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1. ………… Charging section of custom duty. a. Section 5

b. Section 7

c. Section 9

d. Section 12

Ans:- a b c d

2. Customs duty shall be levied at such rates

as may be prescribed under Customs Tariff Act,

1975, or any other law in force on goods:

a. Imported into India by any person other than

Government

b. Exported from India by any person other than

Government

c. Imported into or exported from India by

government

d. All of the above

Ans: a b c d

3. The basic condition for levy of Customs Duty is:

a. There must be import or export of goods

b. There must be import or export of services

c. There must be import or export of goods or

services or both

d. All of the above

Ans: a b c d

4. Importation of goods by Government also

treated at par with other imported goods. State

whether the statement is true or false.

a. True

b. False

Ans: a b c d

5. As per Customs Act, 1962, Goods includes

a. Vessels, Aircraft & Vehicles

b. Stores, Baggage, Currency and Negotiable

Instrument

c. Any other kind of movable property

d. All of the above

Ans: a b c d

6. As per Customs Act, 1962, Conveyance includes:

a. Vessel

b. Aircraft

c. Vehicle including railway vehicle

d. All of the above

Ans: a b c d

7. When a foreign ship coming into India for

unloading of cargo then duty is payable on:

a. Only on cargo unloaded in India

b. Cargo including ship (as goods includes ship)

c. On value of vessel

d. None of above

Ans: a b c d

8. Jet Airways of India has purchase aircraft from a

foreign shipping company for transportation of

goods or passenger within India. State whether

such aircraft are liable to duty under Customs Act,

1962.

a. Not liable to duty as aircraft merely imported for

carriage of goods or passenger within India

b. Liable to duty as aircraft is covered in the

definition of goods

c. Duty is payable only if Aircraft use for carriage of

goods or passenger outside India

d. None of the above

Ans: a b c d

9. As per Customs Act, 1962, Store means goods for

use in a Vessels or Aircraft & it includes fuel and

spare parts and other article of equipment for

immediate fitting. State whether the statement is

correct or not as per the law.

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a. Correct

b. Incorrect

Ans: a b

10. As per section 2(3) of Customs Act, 1962,

Baggage includes:-

a. Unaccompanied baggage

b. But does not include Motor Vehicles

c. Both a & b


Ans: a b c d

11. Baggage means luggage or personal belongings

of:

a. Passenger

b. Member of the crew

c. Both a & b above

d. None of above

Ans: a b c d

12. The limit to ensure check over the free inflow or

outflow of paper money has been set at:

a. ₹ 50000

b. ₹ 10000

c. ₹ 25000

d. ₹ 100000

Ans: a b c d

13. As per Customs Act, 1962, the term “India” includes:

a. Territorial water upto 12 nautical miles

b. Territorial water upto 24 nautical miles

c. Contiguous Zone

d. Indian Exclusive Economic Zone

Ans: a b c d

14. India includes the surface of sea in the territorial

water but does not include the air space above and

the ground at the bottom of the sea. Identify the

correctness of this statement.

a. Correct

b. Incorrect

Ans: a b

15. Territorial water of India extends upto:

a. 24 nautical miles into the sea from the

appropriate base line

b. 24 nautical miles

c. 12 nautical miles into the sea from the

appropriate base line

d. 12 nautical miles

Ans: a b c d

16. The goods are said to be imported into India or

exported from India only when it crosses:

a. territorial water

b. High seas

c. Contiguous Zone

d. Indian Exclusive Economic Zone

Ans: a b c d

17. As per Customs Act, 1962, the term “Import” with its grammatical variation and cognate

expression means:

a. Purchase from foreign country

b. Supplier is located outside India

c. Bringing into India from a place within India

d. Bringing into India from a place outside India

Ans: a b c d


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18. In case of import of goods, taxable event occurs

when:

a. Goods crosses the territorial water

b. Goods crosses the customs barrier

c. Goods goods have been dispatched by the

supplier

d. Goods become the part of land mass of India

Ans: a b c d

19. An importer can use warehousing facility if:

a. He does not have sufficient storage space, or

b. He does not want to block his money by paying

the entire duty on imported goods, or

c. Both a & b above


Ans: a b c d

20. Taxable event in case of warehoused goods

arises when:

a. Into bond bill of entry is filed

b. Ex bond bill of entry is filed

c. Goods deposited in warehouse for storage

d. All of the above

Ans: a b c d

21. When goods are deposited in the warehouse,

the revenue for the government is safeguarded by

the importer by executing a bond which is equal

to:

a. Sum of the amount of duty payable by him

b. Double the amount of duty payable by him

c. Thrice the amount of duty assessed on the goods

at the time of import

d. No such bond is required

Ans: a b c d

22. As per sec 2(26), Importer in relation to any

goods at any time between their importation and

the time when they are cleared for home

consumption includes:

a. Owner

b. Beneficial owner

c. Any person holding himself out to be the

importer

d. All of the above

Ans: a b c d

23. Mr. Alex of Mumbai has import goods from

USA. When the goods were on high sea he sale

those goods to Mr. Peter of Mumbai. Mr. Peter

clears the goods from Customs Barrier by filing

Into Bond bill of entry. Identify the importer in the

given case.

a. Mr. Alex

b. Mr. Peter

c. Both Mr. Alex & Mr. Peter

d. None of above as high seas sale is not treated as

import

Ans: a b c d

24. M/s Saturn Ltd. has import sewing machines

from Japan. Mr. Arjun a clearing & forwarding

agent. Who clears the goods on behalf of M/s

Saturn Ltd. from custom port by filing the bill of

entry for home consumption by using the Import

Export Code of M/s Saturn Ltd. Identify the

importer.

a. M/s Saturn Ltd.

b. Mr. Arjun

c. Either a or b above

d. both a & b above

Ans: a b c d


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25. The water extending into the sea up to the limit

of contiguous zone of India, continental Shelf,

Exclusive economic zone and other Maritime zone

includes any bay, gulf, harbor, creek or tidal river

is known as:

a. Territorial water

b. Custom water

c. Indian Customs water

d. High Seas

Ans: a b c d

26. State whether the following statement is true

or false.

If an officer of customs has reason to believe that

any person in India or within the Indian customs

water has committed an offence punishable u/s

132 or 133 or 135 or 135A or 136, he may arrest

such person informing him of the grounds for such

arrest.

a. True

b. False

Ans: a b

27. The term Export with its grammatical variation

& cognate expression means:

a. Supply of goods to a recipient located outside

India

b. Supply beyond territorial water

c. Both a & b above

d. Taking out of India to a place outside India

Ans: a b c d

28. The process of Export is said to be completed

when the goods:

a. Reached the destination port

b. Crosses the Indian Port

c. Crosses the Indian Territorial water

d. Crosses the Indian Customs Water

Ans: a b c d

29. In relation to any goods a beneficial owner can

also be treated as exporter. State true or false

a. True

b. False

Ans: a b

Answers:-

1 D 11 C 21 C

2 D 12 B 22 D

3 A 13 A 23 B

4 A 14 B 24 A

5 D 15 C 25 C

6 D 16 A 26 A

7 A 17 D 27 D

8 B 18 B 28 C

9 B 19 C 29 A

10 C 20 B


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1. Custom area means the area of custom

station and includes any area:

a. Where imported goods or export

goods are ordinarily kept before

clearance by Customs Authorities

b. Where imported goods or export

goods are ordinarily kept after

clearance by Customs Authorities

c. Where dutiable goods are kept for

clearance

d. All of the above

Ans:- a b c d

2. Custom Station means:

a. Custom Port

b. Custom Airport

c. Land Custom Station

d. All of the above

Ans:- a b c d

3. Custom Port also includes inland

container depot. Sate true or false

a. True

b. False

Ans:- a b c d

4. Inland Container Depot is a Custom

Station duly:

a. Appointed by Central Board of

Excise & Customs

b. Licensed by Central Board of Excise

& Customs

c. Appointed by Central Board of

Indirect Taxes & Customs

d. Licensed by Central Board of

Indirect Taxes & Customs

Ans:- a b c d

5. Movement from ICD to a Land Customs

Station or Customs Airport is akin to

Transshipment from one customs

station to another customs station.

Sate whether the statement is correct

or not as per the law.

a. Correct

b. Incorrect

Ans:- a b

6. Choose the correct alternative from

the following in context of ICD.

i) It is created at a place where

seashore is not available

ii) Facilities for processing of Import

Manifest, Export Manifest, Bill of

Entry, etc. are made available at the

ICD itself

iii) They are created for the purpose of

Loading/Unloading of Imported

Goods only

iv) It has an independent existence at

par with any other Customs Station

a) i, ii & iv above

b) i & ii above

c) iii & iv above

d) All of the above

Ans:- a b c d

7. Container Freight Station is a place

where only a part of the customs

process mainly with the examination of

goods is carried out, is set up with the

main objective of:

a. Decongesting the Land Customs

Station

b. Decongesting the Ports

c. Decongesting the ICD’s

d. Decongesting the Customs Airport

Ans:- a b c d

8. Container Freight Station can carried

out customs processes such as:

a. Processing of Import Manifest &

Export Manifest

b. Processing of Bill of entry

c. Examination of goods

d. All of the above

Ans:- a b c d

9. As per the new policy guidelines, the

customs related activities to be carried

out at Air Freight Station are:


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a. Clearance of all import and export

cargo

b. Assessment and examination

c. Payment of duties

d. All of the above

Ans:- a b c d

10. Air Freight Station avoids congestion at

main Airport besides expediting

clearance of imported goods and

minimizing handling operations at the

Airport.

State whether the statement is true or

false.

a. True

b. False

Ans:- a b

11. Appointment of Boarding stations by --

-------

a. Principal Commissioner of Customs

b. Commissioner of Customs

c. Chief Commissioner of Customs

d. a or b above

Ans:- a b c d

12. Entry in relation to goods means an

entry made in:

a. Bill of Entry

b. Shipping Bill or Bill of Export

c. Both of the above


Ans:- a b c d

13. Entry includes entry of goods in:

a. Label of declaration (goods

imported or exported by post)

b. Bill of entry, shipping bill or bill of

export



Ans:- a b c d

14. In relation to Vessel, Person-in-charge

is known as:

a. Sailor of the ship/vessel

b. Guard or person having the chief

direction of the vessel

c. Master of the Vessel

d. Commander of the Vessel

Ans:- a b c d

15. which of the following person is

included as a Person-in-Charge

a. Master of the Vessel

b. Commander or Pilot in charge of

aircraft

c. The Conductor, guard or any other

person having the chief direction of

the train

d. All of the above

Ans:- a b c d

16. The driver or other person in-charge of

vehicle is not included in the list of

Person-in-charge as per the Customs

Act, 1962. Identify the validity of this

statement.

a. Valid

b. Invalid

Ans:- a b

Importation and Exportation

17. Select the appropriate alternative from

the following in relation to modes used

for importation or exportation of

goods.

i) Goods can be imported/exported

by land/sea/air

ii) Goods can be imported/exported

through post

iii) Goods can be imported by

passenger as their baggage

iv)Ship/aircraft stores which are

considered to be imported/exported

and charged to customs duty

v) Motor Vehicle imported as baggage

a. All of the above

b. only i & ii above

c. i, ii, iii & iv above

d. i, iii & v above


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Ans:- a b c d

Section 29: Arrival of Vessels and Aircraft in

India

18. In case of first time or subsequent time

of arrival of vessel/aircraft in India

from a place outside India, carrying

goods or passenger, the person-in-

charge may permit the vessel or

aircraft to call or land at any place

other than a customs port/airport.


false.

a. True

b. False

c. True – if permitted by the Board

Ans:- a b c d

19. In which of the following case

conveyance can call or land at any

other place other than customs

port/airport.

a. accident

b. bad weather

c. some genuine unavoidable reason

d. All of the above

Ans:- a b c d

20. Following are the consequences of

failure on the part of the person in

charge of the vessel to comply with the

provisions of calling the vessel at any

place other than customs port.

a. Penalty u/s 112

b. Confiscation of goods u/s 111

c. Confiscation of conveyance u/s

115(1)

d. All of the above

Ans:- a b c d

Section 30: Delivery of Arrival

Manifest or Import General Manifest

or Import Report

21. The document which contains the

detailed information to customs about

goods in the vessels/aircraft/ vehicle is

called as

a. Arrival manifest or Import General

Manifest /Import Manifest

b. Bill of entry

c. Import Report

d. Both a & c above

Ans:- a b c d

22. The person liable to submit Import

Manifest is:

a. Importer

b. Exporter

c. Person –in -charge of Conveyance

d. Either a or b above

Ans:- a b c d

23. Mr. X is a master of vessel. The vessel

coming to India from China What is the

time limit within which Mr. X need to

submit the import general manifest

a. any time prior to the arrival of the

vessel

b. any time after to the arrival of the

vessel

c. within 12 hours after its arrival

d. All of the above

Ans:- a b c d

24. Import Report is required to be

delivered when goods are imported by

a vehicle. The time limit to submit is:

a. At any time before arrival of the

vehicle at the customs station

b. Within twelve hours before the

arrival of the vehicle at the customs

station

c. Within twelve hours after the

arrival of the vehicle at the customs

station

d. At any time after arrival of the

vehicle at the customs station

Ans:- a b c d


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25. Person in charge liable to the penalty

for not submitting the Import General

Manifest/Import Report within the

given time limit is:

a. ₹ 50000

b. not more than ₹ 50000

c. ₹ 50000 and above


Ans:- a b c d

26. From the following which goods need

separate declaration to be mentioned

in Import General Manifest?

a. Gold

b. arms

c. Narcotics

d. All of the above

Ans:- a b c d

Section 30A: Special Passenger and

Crew Manifest

27. State whether the following statement

is correct or incorrect.

Proper officer can ask Mr. P (master of

vessel) to submit passenger & crew

manifest with import general manifest.

a. correct

b. Incorrect

Ans:- a b

28. The person-in-charge of a conveyance

that enters India from any place

outside India or any other person shall

deliver to the proper officer the arrival

manifest of passenger or crew. The

time limit for the same is:

a. before arrival in case of

vessel/aircraft / vehicle

b. after arrival in case of

vessel/aircraft/vehicle

c. before arrival in case of

vessel/aircraft & upon arrival in case

vehicle

d. upon arrival in case of

vessel/aircraft/vehicle

Ans:- a b c d

Section 31: Imported goods not to be

unloaded from vessels until entry

inward granted

29. The master of the vessel shall not

permit the unloading of any imported

goods along with baggage

accompanying a passenger or a

member of the crew, mail bags,

animals except perishable & hazardous

goods, until an order has been given by

the proper officer granting entry

inward to such vessel. Identify whether

the statement is valid or invalid.

a. Valid

b. Invalid

Ans:- a b

30. Which of the following goods allow to

be unloaded from vessel even if the

master of vessel not receives entry

inward?

a. Baggage of crew

b. mail bags

c. Animals

d. All of the above

Ans:- a b c d

31. Mr. Ram imported some goods from

USA. The vessel crosses the Indian

territorial water on 25/02/2019. The

master of the vessel submitted the

IGM on 26/02/2019. The vessel

reaches the customs port on

27/02/2019 and entry inward granted

by the proper officer of customs on

28/02/2019. Identify the date on which

imported goods can be unloaded from

the vessel.

a. 25/02/2019

b. 26/02/2019

c. 27/02/2019

d. 28/02/2019

Ans:- a b c d


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32. Import / Export goods are not to be

unloaded or loaded except -------

a. Importer/ Exporter itself

b. Under supervision of proper Officer

c. any authorized person

d. no supervision is required

Ans:- a b c d

33. The condition for imported goods to be

water borne is that it should be

accompanied with:

a. Bill of entry

b. Shipping Bill

c. Import Manifest or Import Report

d. Boat note

Ans:- a b c d

Section 46: Entry of Goods on Importation

34. Bill of entry is an:

a. Application by the importer of

goods for assessment and clearance

of goods form customs area

b. Application by the exporter of goods

for assessment and clearance of

goods form customs area

c. Application by the clearing and

forwarding agent for assessment

and clearance of goods form

customs area on behalf of the

importer

d. Both a & c above

Ans:- a b c d

35. Generally the bill of entry shall be

presented ---------.

a. Manually

b. Electronically


d. Both a & b above

Ans:- a b c d

36. Bill of entry can be presented for:

a. Home Consumption

b. Warehousing i.e. Into Bond

c. Clearance from warehouse for

Home Consumption i.e. Ex-bond

d. All of the above

Ans:- a b c d

37. State the time limit of presentation of

Bill of entry by an importer.

a. Before arrival of the conveyance

carrying the goods arrives at a

customs station

b. After arrival of the conveyance

carrying the goods arrives at a

customs station

c. Before the end of the next day

following the day (except holiday)

on which the conveyance carrying

the goods arrives at a customs

station


Ans:- a b c d

38. In case of incomplete bill of entry, the

proper officer may, pending the

production of such information, permit

him:

a. To examine the goods in the

presence of an officer of customs

b. To deposit the goods in a public

warehouse without warehousing

the same i.e. warehousing without

warehousing


d. None of above

Ans:- a b c d

39. The importer who present a bill of

entry shall ensure:

a. The accuracy & completeness of the

information given therein

b. The authenticity and validity of any

document supporting it

c. Both a & b


Ans:- a b c d


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40. An importer can file bill of entry prior

to the expected arrival of

vessel/aircraft/vehicle. State whether

the statement is true or false.

a. True

b. False

Ans:- a b

41. An importer can file bill of entry at any

time--------------- prior to the expected

arrival of the vessel or aircraft or

vehicle by which the goods have been

shipped for importation into India

a. Not exceeding one month

b. Not exceeding 30 days

c. Exceeding 30 days

d. Exceeding one month

Ans:- a b c d

42. Parag imported some goods from

Russia which were shipped by vessel

on 01-01-2019. The vessel crosses the

territorial water on 07-01-2019 and the

expected arrival of such vessel at the

customs port will be 10-01-2019. Parag

wants to file the prior bill of entry.

Suggest the date for filing prior bill of

entry by Parag as per the provisions of

Customs law.

a. After 10-01-2019

b. After01-01-2019

c. Before 11-12-2018

d. Not before 11-12-2018

Ans:- a b c d

Section 47: Clearance of goods for

Home Consumption

43. Choose the correct alternative from

the following An importer shall pay

import duty-

a. On the date of presentation of the

bill of entry in case of self-

assessment

b. Within one day (excluding holidays)

from the date on which the bill of

entry is returned to him by the

proper officer for payment of duty

in case of assessment, reassessment

or provisional assessment

c. In case of deferred payment, from

such due dates as may be specified

by rules made in this behalf

d. All of the above

Ans:- a b c d

44. The importer who fails to pay the duty

within the time so specified, he shall be

liable to pay interest at the rate of------

----- on the amount of duty not paid or

short paid till the date of its payment.

a.18%

b.12%

c.15%

d.24%

Ans:- a b c d

Section 48: Procedures in case of

goods not cleared, warehoused or

transshipped within thirty days after

unloading

45. Within -----------from the date of

unloading goods should be cleared,

warehoused or transshipped

a. Within 5 days

b. Within 10 days

c. Within 15 days

d. Within 30 days

Ans:- a b c d

46. What action can be taken by custodian

if goods not cleared, warehoused or

transshipped within given time?

a. sale

b. Destroy

c. barter

d. Exchange

Ans:- a b c d

47. Which of the following goods can be

sale by port trust authority even if 30


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days from unloading has not been

completed?

a. Animal

b. Hazardous goods

c. arms and ammunition

d. all of the above

Ans:- a b c d

48. Who will direct the sale of arms and

ammunitions, if not cleared by

importer?

a. Government officer

b. Proper officer of customs

c. Proper officer of Defense

d. Central Government

Ans:- a b c d

Section 150: Procedure for sale of

goods and application of sale

proceeds

49. The sale proceeds of imported goods

by the custodian shall be directly paid

to the owner of the goods. State true

or false.

a. True

b. False

Ans:- a b

50. If it is not possible to pay the balance

of sale proceeds to the owner of the

goods within a period of six months or

such further time as the commissioner

may allow, from the date of sale of

such goods, then such balance of sale

proceeds shall be paid to:

a. Consumer Welfare Fund

b. Central Government

c. Nominee / Legal representative of

owner

d. State Government

Ans:- a b c d

Section 49: Warehousing without

Warehousing

51. Mr. A can store the goods in public

warehouse under the provision of

warehousing without warehousing for

---------

a. One year

b. Six months

c. One month

d. 30 days

Ans:- a b c d

52. Principal Commissioner of Customs or

Commissioner of Customs may extend

the period of storage of goods stored

in warehouse without warehousing

provisions, for a further period:

a. Not exceeding 180 days at a time

b. Not exceeding 30 days at a time

c. Not exceeding 60 days at a time

d. Not exceeding 90 days at a time

Ans:- a b c d

Section 50: Entry of goods for exportation

53. The application by exporter to customs

officer for clearance of goods for

exportation is known as:

a. Shipping Bill

b. Bill of Export

c. Bill of Lading


Ans:- a b c d

Section 51: Clearance of goods for

exportation

54. The proper officer of customs may

make an order permitting clearance

and loading of goods for exportation.

Such order is known as:

a. Export Report order

b. Let Export order

c. Bill of export order

d. Entry outward order

Ans:- a b c d


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Section 39: Export goods not to be

loaded on vessel until entry outward

granted

55. Entry outward means general

permission by customs authority to the

master of vessels for allowing him to:

a. load the cargo

b. load passenger

c. load mail bags

d. All of the above

Ans:- a b c d

56. Which of the following goods master of

vessel allow to be loaded in vessel even

if entry outward not granted by proper

officer?

a. Baggage

b. mail bags

c. cargo

d. both a & b

Ans:- a b c d

57. In which of the following conveyance

Export goods not to be loaded until

Entry-Out-wards granted

a. Vessel

b. Aircraft

c. Vehicle

d. All of the above

Ans:- a b c d

Section 53: Transit of certain goods

without payment of duty

58. In case of transit of goods the

conveyance changes.

State true or false

a. True

b. False

Ans:- a b

59. The records maintained in transit of

goods remains same and the goods will

have to be shown in the manifest as:

a. Transit goods

b. Bottom cargo


d. Both a & b above

Ans:- a b c d

Section 54: Transshipment of certain goods


60. Where goods imported into a customs

station are intended for

transshipment, a ------------ shall be

presented to the proper officer in such

form or manner as may be prescribed

Fill in the blank

a. Bill of export

b. Bill of lading

c. Shipping bill

d. Bill of transshipment


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Answers:-

1 A 11 D 21 D 31 D 41 B 51 D

2 D 12 C 22 C 32 B 42 D 52 B

3 A 13 B 23 A 33 D 43 D 53 D

4 C 14 C 24 C 34 D 44 C 54 B

5 A 15 D 25 B 35 B 45 D 55 A

6 A 16 B 26 D 36 D 46 A 56 D

7 B 17 C 27 A 37 C 47 D 57 A

8 C 18 C 28 C 38 C 48 D 58 B

9 D 19 D 29 B 39 C 49 B 59 D

10 A 20 D 30 D 40 A 50 B 60 D


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Date for determination of Rate & Tariff Value

Section 15(1): for Imported Goods

1. Mr. Parekh imported readymade

garments from China. The goods were

dispatched by the supplier on

10/04/2018. The vessel crosses the

territorial water on 14/04/2018 and

reaches the customs station on

15/04/2018. The entry inward was

granted by the customs officer on

16/04/2018 and bill of entry was filed

by Mr. Parekh on 17/04/2018.

Which is the relevant date for

determining the rate of duty and tariff

value?

a. 14/04/2018

b. 15/04/2018

c. 16/04/2018

d. 17/04/2018

Ans:- a b c d

2. Following are the details of transaction

of M/s Haldiram Ltd.

Particulars Date of

submission

Rate of

Import Duty

Vessel crosses

territorial water

25.06.2018 8%

Bill of entry –

Into Bond

1.7.18 10%

Entry Inward

granted on

7.7.18 12%

Ex-bond bill of

entry

15.7.18 18%

Determine the rate of duty applicable in

the given case:

a.10%

b.12%

c.18%

d.8%

Ans:- a b c d

3. Following transactions are available

from the books of Mr. Vijay in relation

to import of goods by vessel.

Particulars Date of

submission

Rate of

Import

Duty

Vessel crosses

territorial

water

20.04.2018 18%

Bill of entry 1.5.18 10%

Entry Inward

granted on

5.5.18 12%

Import

Manifest

3.5.18 8%

Identify the rate of duty applicable in

case of Mr. Vijay.

a.18%

b.10%

c.12%

d.8%

Ans:- a b c d

4. Calculate the amount of basic customs

duty payable by M/s Jupiter Ltd. from

the following transactions.

Imported machineries from Japan on

11/3/18 – ₹ 500,000/- & duty rate on

that date was – 10%

Goods arrived at the Indian Customs

Airport on – 22/03/18, rate changes to

– 12.5%

Bill of entry presented by M/s Jupiter

Ltd. on 20/03/18 & duty rate on that

date was – 15%

a. ₹ 50,000

b. ₹ 62,500

c. ₹ 75,000

d. ₹ 500,000

Ans:- a b c d


18

Section 16(1): For Export Goods

5. Punjab Sweets exported its products

valuing ₹ 2500000 but not u/s 50 on 5.5.18, the rate of duty was 8%. The

proper officer granted Let export order

on 12.5.18 when rate was 10%. The

shipping bill was filed on 8.5.18, duty

rate on that date changes to 12.5%. The

export duty was paid on 15.5.18 by

Punjab Sweets when the rate 12%.

Identify the rate of duty applicable to

Punjab Sweets.

a.8%

b.10%

c.12.5%

d.12%

Ans:- a b c d

6. Mr. Sitaraman exported goods worth ₹ 10 lakhs to Canada by a vessel. The

details of related transactions are as

follows:

Particulars Date of

Submission

Rate of

export

duty

Shipping

Bill

1.1.18 10%

Entry

outward

granted

5.1.18 12%

Let export

order

8.1.18 18%

Ship

crosses

the

territorial

water

10.1.18 12.5

Calculate the amount of export duty

payable by Mr. Sitaraman.

a. ₹ 180,000

b. ₹ 100,000

c. ₹ 120,000

d. ₹ 125000

Ans:- a b c d

Assessment


is true or false.

Assessment means determination of

the dutiability of any goods and the

amount of duty, tax, cess or any other

sum payable, if any, under this Act or

under the Customs Tariff Act, 1975 or

under any other law for the time being

in force and includes provisional

assessment, self-assessment, re-

assessment but does not include any

assessment in which duty assessed is

nil.

a. True

b. False

Ans:- a b c d

Section 17: Self-assessment & Re-

assessment

8. Re-assessment of duty is done by the

proper officer of customs if:

a. Duty is not paid

b. Assessment not done correctly

c. Self-assessment not done

correctly

d. Duty is paid under protest

Ans:- a b c d

9. If importer/exporter does not confirm

his acceptance on re-assessment, then

proper officer of customs shall pass a --

------ on the re-assessment.

Fill in the blank

a. Show Cause Notice

b. Demand Order

c. Standing Order

d. Speaking Order

Ans:- a b c d


19

10. The proper officer of customs shall pass

a speaking order, if the

importer/exporter does not confirm his

acceptance on re-assessment, within:

a. One month from the date of re-

assessment of bill of entry or

shipping bill, as the case may be

b. 30 days from the date of re-



c. 15 days from the date of re-



d. 60 days from the date of re-



Ans:- a b c d

Section 18: Provisional Assessment

11. Choose the correct alternative in the

context of provisional assessment.

Provisional Assessment can be done in:

i. Where the importer or exporter is

unable to make self-assessment

under sub-section (1) of section 17

and makes a request in writing to

the proper officer for assessment

ii. Where the proper officer deems it

necessary to subject any imported

goods or export goods to any

chemical or other test

iii. Where the importer or exporter has

produced all the necessary

documents and furnished full

information but the proper officer

deems it necessary to make further

enquiry

iv. Where necessary documents have

not been produced or information

has not been furnished and the

proper officer deems it necessary to

make further enquiry

a. i & iv above

b. ii & iii above

c. Only i, ii & iv above

d. i, ii, iii, iv

Ans:- a b c d

12. The importer or exporter shall be liable

to pay interest, on any amount payable

to Central Government when finally

assessed or re-assessed duty amount is

more than duty provisionally paid, at

the rate of:

a.24% p.a.

b.15% p.a.

c.18% p.a.

d.12% p.a.

Ans:- a b c d

13. If the finally assessed duty or re-

assessed duty is less than duty

provisionally paid, then the importer or

exporter is entitled to refund along with

interest on such unrefunded amount, if

the amount is not paid within three

months from the date of final or re-

assessment of duty. The interest rate in

such case shall be:

a.6% p.a.

b.10% p.a.

c.5% p.a.

d.12% p.a.

Ans:- a b c d

14. Raghav Industries paid duty on

imported goods under provisional

assessment. The details are as follows:

Particulars Date Amount

Goods imported

from Dubai

1-10-18 ₹ 10 Lakhs


20

Provisional duty

paid @ 12%

10-10-18 ₹ 1.2 Lakhs

Finally assessed

duty @ 18%

5-2-19 ₹ 1.8 Lakhs

Calculate the amount of interest

payable by Raghav Industries on final

assessment, if they make the final

payment on 10-2-19.

a. ₹ 3,033

b. ₹ 3,280

c. ₹ 9,838

d. ₹ 3,008

Ans:- a b c d

Custom Finalisation of Provisional

Assessment (Regulation, 2018)

15. If any importer or exporter or his

authorized representative or customs

broker contravenes any provision of

Custom Finalization of Provisional

Assessment regulation or abets such

contravention, or fails to comply with

any provision of these regulations, he

shall be liable to penalty which may

extend to:

a. One lakh rupees

b. One lakh & fifty thousand rupees

c. Fifty thousand rupees

d. Ten thousand rupees

Ans:- a b c d

Section 19: Determination of duty

where goods consist of articles liable

to different rates of duty

16. Mr. Salman imported a shaving kit

which includes razor, foam cream &

shaving brush. The rate of duty is 18%,

12% & 5% respectively mentioned

separately on each of the above items.

State the rate of duty applicable on

such import by Mr. Salman

a.18% on complete kit

b.5% on complete kit

c. Each item will be charged separately

with their respective rate of duty

d. Either a or c above

Ans:- a b c d

17. Mr. Vishal provided coaching service

through video lectures on pen drive

along with books in a kit. He exported

his services to Dubai and wants to know

the duty rate to be imposed on export

service. Tariff rate on coaching service

is 18% and on books the rates are nil.

But the exporter does not have any

evidence to produce before the officer

for different rates. The service of Mr.

Vishal will be chargeable at the rate of:

a.18%

b. Nil rate

c. 0%

d.18% on pen drive value & nil rate on

books value

Ans:- a b c d

18. Any accessories supplied with main

article which satisfy the condition of

Accessories (condition) rule, 1963 are

chargeable to duty at the:

a. Rate of that accessories

b. Same rate as that of the main article

c. Highest of the two rates


Ans:- a b c d

Project Imports

19. Which of the following projects are

considered as eligible projects for the

purpose of Project Import?

Industrial Plants

Power projects


21

Project for oil or mineral exploration

Mining Projects

Irrigation projects

Other projects as specified by C.G.

a. All of the above except iii & iv

b. Only iii, iv & vi above

c. Only ii, v & vi above

d. i, ii, iii, iv, v, vi

Ans:- a b c d

Answer:-

1 D 11 D

2 C 12 B

3 C 13 A

4 B 14 B

5 D 15 C

6 A 16 C

7 B 17 A

8 C 18 B

9 D 19 D

10 C


22


23

1. Duties of customs on imported goods

or export goods can be:

a. Specific duty

b. Ad-valorem duty

c. Either a & b above


Ans:- a b c d

2. Ad-valorem duty means:

a. Duty levied on quantity

b. Duty levied on the basis of value



Ans:- a b c d

3. For the purpose of Customs Tariff Act,

1975, or any other law for the time

being in force, the value of imported

goods and export goods shall be:

a. Tariff value

b. MRP based value

c. Transaction value

d. any of the above

Ans:- a b c d

4. As per section 14(1) of Customs Act,

transaction value means:

a. Price paid to the seller of

imported goods

b. Price paid by the buyer of export

goods

c. Both a & b above

d. Price actually paid or payable

for goods

Ans:- a b c d

5. In case of imported goods, transaction

value also includes:

a. Commission and brokerage

b. Cost of transportation at the

place of importation

c. Landing charges at the Indian

port

d. Only b & c above

Ans:- a b c d


is true or false

As per section 14(1) of Customs Act,

1962, transaction value means price

actually paid or payable for the goods

when sold for export to India or export

from India for delivery at the time and

place of importation or exportation as

the case may be where buyer and seller

are not related and price may or may

not be the sole consideration

a. True

b. False

Ans:- a b

7. The value of imported goods shall not

include:

a. Cost of freight & insurance upto

place of importation

b. Landing Charges

c. Cost of transport at or beyond

the place of importation

d. Both b & c above

Ans:- a b c d

Conversion dates for foreign exchange

rate

8. In case of imported goods, the

conversion from foreign currency to

Indian currency shall be done with

reference to the rate of exchange

prevalent on the date of:

a. Filing bill of entry for clearance

from warehouse for home

consumption u/s 68

b. Filing bill of entry for home

consumption u/s 46

c. Filing bill of entry warehousing

u/s 46

d. Either b or c above

Ans:- a b c d


24

9. Mr. Vinod imported mobile from US

worth $ 850 on 1/1/19, and presented

the bill of entry for warehousing on

5/1/19. Later on he file the bill of entry

clearance for home consumption on

15/1/19. The exchange rates for $

available on various dates are as

follows:

Date Rate by RBI

(₹) Rate by CBIC (₹)

1/1/19 60.00/$ 59.50/$

5/1/19 61.20/$ 62.00/$

15/1/19 60.35/$ 60.60/$

Calculate the value of imported mobile.

a. ₹ 50575

b. ₹52700

c. ₹ 52700

d. ₹52020

Ans:- a b c d

10. The exchange rate prevalent on the

date of filing --------- shall be considered

for conversion of value of export goods

in case of goods exported by vehicle.

a. Bill of entry

b. Bill of lading

c. Shipping bill

d. Bill of export

Ans:- a b c d

11. Arnav Industries exported readymade

garments for ¥ 50,00,000 through

vessel. The exchange rate at the time

of:-

Contract made for Export: ₹1= ¥ 215.

Date of filling shipping bill : ₹1=¥ 221

Date of let export order: ₹1=¥ 211

The RBI rate were constant as ¥ 220

State the exchange rates which shall be

considered for conversion of value into

Indian currency.

a. ¥ 215

b. ¥ 211

c. ¥ 221

d. ¥ 220

Ans:- a b c d

12. Which of the following agency/agencies

can notify the exchange rates?

a. Central Board of Indirect Taxes

& Customs

b. The Reserve Bank of India

c. Foreign Exchange Dealers’ Association of India

d. All of the above

Ans:- a b c d

13. For the purpose of valuation under

customs laws, rate of exchange notified

by ----- shall be taken for conversion.

a. Central Board of Direct Taxes

b. Central Board of Excise and

Customs

c. Central Board of Indirect Taxes

and Customs

d. Reserve Bank of India

Ans:- a b c d

Section 14(2) Tariff Value

14. The tariff values for any class of

imported goods or export goods may be

fixed by:

a. Central Board of Indirect Taxes

and Customs

b. Central Board of Excise and

Customs

c. Central Board of Direct Taxes

d. None of above

Ans:- a b c d

15. The board has fixes tariff value for

goods imported by Mr. Rohan but he

filed the bill of entry on the basis of

transaction value. The customs officer

rejected the bill of entry of Mr. Rohan

on the contention that transaction

value cannot be accepted for those

goods for which board had given tariff


25

value. State whose contention is valid

as per the provision of law.

a. contention of Officer is invaild

b. contention of Officer is vaild

c. contention of Mr. Rohan is vaild

d. Both a & c of the above

Ans:- a b c d

16. Platinum Ltd. imported some goods

from Canada. The tariff value notified

for such goods by the board was ₹ 527000 and the transaction value was

₹520000. State the value to be taken by

Platinum Ltd. for the purpose of

customs valuation.

a. ₹ 527000

b. ₹ 520000



Ans:- a b c d

17. Identify the transaction value in the

following case

List price of the imported goods was ₹ 1000/-, quantity discount offered by

the supplier was ₹ 100/- and price

payable to the supplier was ₹ 900/- and

cash discount ₹ 100/-.if payment is

made within 30days. Mr. Raj made

payment on 29th days.

a. ₹ 1000

b. ₹ 900

c. ₹ 800


Ans:- a b c d

18. Mr. Avdhesh enters into contract with

the supplier of USA to purchase goods

after 4 months. The contract price was

₹ 800000. Due to recession in

international market the price of the

goods reduced to ₹ 650000. The special discount offered by the seller to Mr.

Avdhesh was ₹ 50000. Such special discount is not offered generally to all

the buyers. Identify the transaction

value to be declared by Mr. Avdhesh in

his bill of entry.

a. ₹ 800000

b. ₹ 750000

c. ₹ 650000

d. ₹ 600000

Ans:- a b c d

Rule 10: Adjustment in Transaction value

19. The value of imported goods shall be

the transaction value adjusted in

accordance with:

a. Rule 12

b. Rule 10

c. Rule 3

d. Rule 4

Ans:- a b c d

20. Adjustments in transaction value as per

rule 10 includes:

i. Free assistance by the buyer in the

form goods or services

ii. Moulds and dies supplied at

reduced cost by the buyer

iii. Buying commission paid to local

agent

iv. Engineering and design work

undertaken in India

v. Transport charges paid as a

condition of sale by the buyer on

behalf of the seller.

Choose the correct alternative

a. i, ii, iii

b. All of the above except (iv)

Above

c. All of the above except (iii)

Above

d. All of the above except (iii) & (iv)

above

Ans:- a b c d

21. Rule 10(2) includes adjustment in

Transaction Value for:


26

a. Cost of transport & cost of

insurance

b. Cost of insurance & landing

charges

c. Cost of transport, cost of

insurance & landing charges

d. Cost of transport & landing

charges

Ans:- a b c d

22. Mr. Bahubali imported crude oil from

Iraq in huge containers. The containers

were returned to the supplier by Mr.

Bahubali as he executes a bond for re-

export of such containers within the

extended time of eight months. The

cost of imported crude is ₹ 50 lakhs which includes the cost of container

which is ₹ 50 thousand. Calculate the transaction value.

a. ₹ 50 lakhs

b. ₹ 50.50 lakhs

c. ₹ 49.50 lakhs

d. ₹ 0.50 lakhs

Ans:- a b c d

23. Which of the following is not included

in transaction value?

i. Commission paid to canalizing agent

ii. Buying commission paid to local

agent

iii. Cost of container which is non-

returnable

iv. Engineering and art work

undertaken in India

v. Dividend distributed by the seller to

the buyer

a. i, ii, iii

b. ii, iv & v above

c. ii, iii & iv above

d. i & iii above

Ans:- a b c d

24. As per rule 10(1) (c), royalty & licence

fees paid in relation to imported goods

shall be included in the transaction

value even though such royalty or fees

is not actually paid or payable.

State whether the above given

statement is correct in the eyes of law.

a. Correct

b. Incorrect

Ans:- a b

25. The value of goods and services

provided by the buyer to the seller

which are incorporated in imported

goods shall be included in the

transaction value only if such goods or

services are supplied free of cost and

not at reduced cost.


false

a. True

b. False

Ans:- a b

26. Suzuki Ltd. from Japan sold

automobiles to Maruti Ltd. India worth

₹ 50 croreswwwwwww. Maruti Ltd.

paid indirectly ₹ 5 crores to Suzuki Ltd. for knowhow as a condition of sale.

Such payment is made for process to be

carried out in India after importation of

automobiles. State whether such

additional payment for knowhow to be

used in India made by Maruti Ltd. be

includible in transaction value or not.

a. Includible

b. Not includible

Ans:- a b

27. Value of imported goods means

transaction value and includes:

a. Cost of transport

b. Cost of insurance till clearance

c. Cost of transport, loading,

unloading and handling charges

associated with the delivery of


27

imported goods and cost of

insurance, upto the place of

importation

d. Both a & b above

Ans:- a b c d

28. Transaction value includes cost of

transport, loading unloading and

handling charges incurred for delivery

of imported goods at the Custom

station. State true or false

a. True

b. False

Ans:- a b

29. Charges incurred for delivery of goods

to the place of importation such as

loading and handling charges incurred

at the ………….. shall be includible in the transaction value.

a. Load port

b. Indian port

c. Local port

d. Both a & b above

Ans:- a b c d

30. Ajanta Ltd. imported wrist watches

from USA for ₹ 15 lakhs. The cost of transport through vessel is not

ascertainable but the sum of free on

board value of the goods and the cost

of insurance is ₹ 15.35 lakhs. Calculate the cost of transport in case of Ajanta

Ltd.

a. ₹ 2.5 lakhs

b. ₹ 3 lakhs

c. ₹ 3.07 lakhs

d. ₹ 2.56 lakhs

Ans:- a b c d

31. If cost of transport, loading unloading &

handling charges is not ascertainable,

then such cost shall be:

a. Nil

b. 20% of FOB value of goods

c. 20% of FAS value of goods

d.20% of CIF value of goods

Ans:- a b c d

32. Cost of insurance shall be……….. where actual amount of insurance is not

ascertainable but the sum of free on

board value of the goods and the cost

referred to clause (a) of rule 10(2) is

ascertainable

Fill in the blank

a.20% of FOB cum transport value

of goods

b.1.125% of FOB value of goods

c.20% of FOB value of goods

d.1.125% of FOB cum transport

value of goods

Ans:- a b c d

33. In case of import of goods by sea route,

FOB cum transport value is ₹ 20 lakhs, where actual cost of transport & cost of

insurance is ₹ 1.5 lakh & ₹ 0.5 respectively. The cost of insurance

includible in transaction value is:

a. Actual cost i.e. ₹ 0.5 lakh

b.1.125% of FOB i.e. ₹ 0.208 lakh

c.1.125% of FOB cum transport i.e.

₹ 0.225 lakh

d.20% of FOB cum transport i.e. ₹ 4 lakhs

Ans:- a b c d

34. Costs related to transshipment of goods

from port to ICD, port to port, CFS to

ICD or port to airport & vice versa

within India will be ……….. from transaction value

Fill in the blank

a. included

b. excluded

Ans:- a b

35. The cost of transport referred to in

clause (a) of rule 10(2) includes:

a. Ship demurrage charges of

normal vessels


28

b. Ship demurrage charges of

vessels from which goods are

not cleared with 30 days

c. Ship demurrage charges of

charted vessels

d. All of the above

Ans:- a b c d

36. Mr. Kumar imported storage tanks from

China. The goods were loaded on big

mother vessels. Due to non- availability

of berth on Mumbai port Mr. Kumar

brought the goods on the dock by small

boats. State whether Mr. Kumar can

include such cost incurred on small

boats in his transaction value (T.V.).

a. Yes, such cost is includible in

T.V.

b. No, such cost is excludible from

T.V.

c. No, such cost is includible

subject to some condition

d. Yes, such cost is includible in

T.V. with the prior permission of

the proper officer

Ans:- a b c d

Rule 3: Transaction Value

37. Rathi Brothers imported books from UK

for £ 2000 with the condition that such

books should not be sold on shops

other than authorized shops of the

seller. Rathi Brothers filed bill of entry

by declaring transaction value (T.V.) but

the officer rejected their T.V. State

whether the officer can do so

a. Yes, the officer can reject the

T.V. on the basis of rule 10(1)

b. Yes, the officer can reject the

T.V. on the basis of rule 3(2)

c. No, the officer cannot do so

d. No, the officer has to accept the

T.V. as the parties are not

related to each other

Ans:- a b c d

38. The conditions of rule 3(2) for

acceptance of T.V. are:

a. There is no restriction as to

disposition or use of goods

subject to some exceptions

b. The buyer & seller are not

related



Ans:- a b c d

39. Mr. Daruwala imported wine from

Singapore and filed his bill of entry by

declaring the transaction value. The

restriction imposed by the seller is that

the buyer should not sale those goods

in Wardha District as the supply of wine

is prohibited by law in Wardha. Is the

transaction value of Mr. Daruwala,

acceptable?

a. Acceptable as no condition of

sale is imposed by the seller

b. Acceptable as restriction is

imposed by law

c. Not acceptable as restriction is

imposed by the seller

d. Not acceptable as restriction is

related to disposition of the

goods

Ans:- a b c d

40. In case of sale of goods to a related

party, transaction value is accepted

where:

a. the relationship does not

influence the price

b. the declared value of the goods

closely approximates to the

transaction value of identical or

similar goods to unrelated

buyer in India

c. the declared value of the goods

closely approximates to the

deductive or computed value

for identical or similar goods

d. All of the above


29

Ans:- a b c d

41. Rio Ltd. USA holds 61% share in Jio Ltd.

India. Rio Ltd. supplied some goods to

Jio Ltd. through vessel at ₹ 45 lakhs on FOB basis. The identical goods were

sold to an unrelated party Trio Ltd. India

at ₹ 42 lakhs on FAS basis. The officer can:

a. Accept the transaction value as

relationship did not influence

the price

b. Reject the transaction value as

buyer and seller are related

c. Reject the transaction value as

sale to unrelated buyer is at

lower price

d. Both b & c above

Ans:- a b c d

42. Mr. Devgan an importer from

Bangalore imported Product “P” from Singapore. The aircraft carrying the

goods reaches Nagpur Airport first and

from there goods are transshipped to

Bangalore airport. Determine the

assessable value of the imported goods

from the following particulars:

Particulars US $

Price of “P” at exporter’s factory

3000

Freight from factory of

the exporter to load

airport

170

Loading and handling

charges at the load

airport

220

Transport charges

from Nagpur airport

to Bangalore airport

150

Freight from load

airport to India

375

Though the aircraft arrived on

15.04.2018, the bill of entry for home

consumption was presented by Mr.

Devgan on 10.04.2018. The exchange

rates notified by board on 15.04.2018

was ₹ 62 per US $ and on 10.04.2018 was ₹ 60 per US $.

a. ₹ 225900

b. ₹ 237188

c. ₹ 235795

d. ₹ 228188

Ans:- a b c d

Rule 2 : Identical & Similar Goods

43. In the context of imported goods,

“Identical goods” means goods which are same in respect of:

a. Physical characteristics of

imported goods

b. Quality of imported goods

c. Reputation of imported goods

d. All of the above

Ans:- a b c d

44. Identical goods must be same in all

respect including quality, color, use,

characteristics etc., even minor

differences are not allowed although

such differences does not affect the

price of the goods being valued.

State true or false

a. True

b. False

Ans:- a b

45. For the purpose of valuation rules, in

case of identical or similar goods,

choose the correct alternative from the

following:

a. Produced in the same country in

which goods being valued were

produced

b. Produced by the same

manufacturer or producer

c. Produced by different

manufacturer or producer,


30

where no such goods were

available from same person

d. All of the above

Ans:- a b c d

Rule 4 /Rule 5 : Transaction value of

Identical or Similar goods

46. The customs officer found more than

one transaction value in case of goods

imported by Sagar Industries Ltd., while

applying the valuation rules. State

which of the transaction value to be

considered by the officer for

computation of custom duty.

a. highest of such values

b. average of all such values

c. lowest of all such values

d. identical or similar value

Ans:- a b c d

47. Mr. Batliwala, the dealer in dry fruits

ordered some dry fruits, the details of

which are as follows:

Date of

import

Quantity Value

Declared

(₹)

Country

of

Export

Jan.

2019

500 M.T. 20000

per M.T.

Dubai

Mar.

2019

450 M.T. 20500

per M.T.

Dubai

Import of similar goods by some other

dealers were also found by the officer,

which are as follows:

Date of

import

Quantity Value

Declared

(₹)

Country

of

Export

Dec.

2018

100 M.T. 30000

per M.T.

Egypt

Oct.

2018

210 M.T. 25500

per M.T.

Saudi

Arabia

The officer rejected the transaction

value declared by Mr. Batliwala.

The action taken by the officer is:

a. Valid, as the value declared by

other importer is greater than

that of Mr. Batliwala

b. Valid, as value of similar goods is

available

c. Invalid, as the value of similar

goods is not available for same

quantity and also the country of

origin are not the same

d. Both a & b above

Ans:- a b c d

48. Mr. Raj an importer has import 1000

M.T. of oil from Dubai at ₹ 3.5 lakhs. The customs officer finds GST that at the

time of importation of this

consignment, there were following

imports of oil from Dubai:

Quantity Unit price (₹) 500 M.T. 10 lakhs

800 M.T. 8.5 lakhs

950 M.T. 6 lakhs

1100 M.T. 5.5 lakhs

If an officer wants to reject the

transaction value declared by the

importer then which of the price is to be

considered by the officer for the

calculation of customs duty.

a. ₹ 3.5 lakhs

b. ₹ 6 lakhs

c. ₹ 5.5 lakhs

d. ₹ 8.5 lakhs

Ans:- a b c d

Rule 7: Deductive Value

49. If the imported goods are sold in India

for which value of similar or identical

goods is not available at or about the

same time, then the value shall be

based on the earliest date after

importation but before the expiry of:

a. thirty days after such

importation


31

b. sixty days after such

importation

c. ninety days after such

importation

d. ninety days before such

importation

Ans:- a b c d

50. Compute the deductive value from the

following details

Particulars Amount

Sale price of imported

goods in India

10000

Profit included in sale price 1500

Commission paid to the

local agent

200

Import duty paid 350

Insurance charges 100

Cost of transport 120

General expenses such as

storage charges

150

The value of imported goods shall be:

a. 8500

b. 7580

c. 8150

d. 8000

Ans:- a b c d

51. For the purpose of deductive value, unit

price is the price at which greatest

aggregate quantity sold to person who

are:

a. related to the sellers in India

b. importer

c. not related to the sellers in India

d. All of the above

Ans:- a b c d

Rule 8: Computed Value

52. Computed value of imported goods is

the sum of:

i. The cost of materials and fabrication

or other processing done on imported

goods

ii. The amount of profit and other

expenses incurred in the country of

exportation

iii. The cost of transport upto the place

of importation

iv. The cost of Insurance upto the place

of importation

v. The landing charges at the place of

importation

Choose the correct alternative from the

following:

a. i, iii, & v only

b. i, ii, & v only

c. i, ii, iii, iv & v

d. i, ii, iii & iv only

Ans:- a b c d

53. Determine the computed value of

Microwave imported by Mr. Kunal from

an exporter in Japan on the basis of

following information:

Particulars US $

Raw material price 2500

Processing charges 500

Other expenses 150

Usual Profit 250

Cost of Transport 100

Landing charges 70

The vessel arrived on 1.4.18 but the bill

of entry filed by Mr. Kunal on 25.3.18.

Insurances is not ascertainable. The

exchange rates are as follows:

Rates given

by

25.3.18 1.4.18

RBI ₹ 55 per $ ₹ 57 per $

CBIC ₹ 58 per $ ₹ 60 per $

a. ₹ 207060

b. ₹ 214200

c. ₹ 203000

d. ₹ 205219

Ans:- a b c d


32

Rule 9: Residual Method

54. Mr. Vasu imported iron bars from Egypt

but the value cannot be determined

under rules 4 to 8 of customs valuation

rules, then value of such imported

goods shall be determined using ………. a. Residual Method

b. Reasonable means


d. None of above

Ans:- a b c d

55. Where transaction value is not

acceptable under rule 3 then officer can

directly apply rule 9 for determining the

transaction value of an importer.

State true or false

a. True

b. False

Ans:- a b

Customs Valuation (Determination of

value of export goods) Rule, 2007

56. In case of export, goods of like kind and

quality which perform same function

and are commercially interchangeable

must not be produced by the different

person.

a. True

b. False

Ans:- a b

57. The adjustment factors which are to be

considered by the proper officer for

determining the value of export goods

includes:

a. Differences in date of

exportation

b. Differences in quantity level

c. Differences in quality,

composition & design

d. All of the above

Ans:- a b c d

58. The proper officer can also make

adjustments for differences in value of

export goods for domestic freight,

insurance charges as well as landing

charges depending on the place of

exportation

a. True

b. False

Ans:- a b

59. Social welfare surcharge is applicable @

10% on the amount of assessable value

and basic custom duty.

a. True

b. False

Ans:- a b

60. Social welfare surcharge is levied at the

rate of:

a.10% of assessable value + basic

custom duty

b.10% of basic custom duty +

additional custom duty

c.10% of basic custom duty

d.10% of assessable value

Ans:- a b c d

61. Calculate the export duty from the

following details

i. FOB value of goods : US $ 50,000

ii. Shipping bill presented on 11-02-18

iii. Let export order given by the proper

officer on 15-02-18

iv. Exchange rates & duty rates notified

by CBIC are as follows:

Date Rate of

exchange

Rate of duty

11-02-18 ₹ 60 per $ 10%

15-02-18 ₹ 62 per $ 12%

a. ₹ 3,00,000


33

b. ₹ 3,10,000

c. ₹ 3,60,000

d. ₹ 3,72,000

Ans:- a b c d

Answers:-

1 c 11 c 21 a 31 b 41 a 51 c 61 c

2 b 12 d 22 c 32 d 42 d 52 d

3 d 13 c 23 b 33 a 43 d 53 d

4 d 14 a 24 b 34 b 44 b 54 c

5 a 15 b 25 b 35 c 45 d 55 b

6 b 16 a 26 a 36 a 46 c 56 b

7 d 17 c 27 c 37 b 47 c 57 d

8 d 18 b 28 b 38 c 48 c 58 b

9 c 19 b 29 a 39 b 49 c 59 b

10 d 20 d 30 c 40 d 50 b 60 c


34


35

Section 13: Duty on Pilfered Goods

1. In the context of Customs Act, 1962, the

term “pilfer” means: a. to steal

b. petty theft

c. both a & b above

d. none of the above

Ans:- a b c d

2. The duty is not payable by the importer in

case of pilfered goods only if any goods are

pilfered:

a. after unloading thereof

b. after unloading thereof but before order

of clearance by proper officer for deposit

in warehouse or home consumption

c. after clearance of order by proper officer

d. before unloading thereof

Ans:- a b c d

3. In case, goods are pilfered when they are in

the custody of Port authority and officer does

not pass any order for clearance of such goods

either for home consumption or deposit in

warehouse, then the duty liability of such

pilfered goods is on:

a. Importer

b. Person in charge


d. Port Authority or Custodian

Ans:- a b c d

4. The relevant date for duty payable on

pilfered goods is the date of:

a. filing of bill of entry

b. order of clearance

c. filing of Import General Manifest or

Report

d. granting entry inward

Ans:- a b c d

5. Mr. Maganlal imported crockeries from

Korea on 10.04.2018 of ₹ 10 lakhs. The master of vessel filed import manifest on 12.04.2018

and entry inward granted on 13.04.2018. Mr.

Maganlal filed bill of entry for home

consumption on 14.04.2018 when he found

that goods of ₹ 2 lakhs were pilfered. The order of clearance for home consumption was

granted on 15.04.2018 only for goods worth ₹ 8 lakhs. The duty rates on various dates are as

below:

Date Exchange Rate

12.04.2018 10%

13.04.2018 12%

14.04.2018 8%

15.04.2018 12.5%

Answer the following questions on the basis of

information given above:

i. The importer is liable to pay duty on goods

worth ₹: a. 2 lakhs

b. 10 lakhs

c. 8 lakhs

d. 10 lakhs if pilfered goods were restored

by the custodian otherwise on 8 lakhs

only

Ans:- a b c d

ii. The rate of duty applicable on goods cleared

for home consumption by Mr. Maganlal is:

a.10%

b.12%

c.8%

d.12.5%

Ans:- a b c d

iii. The liability to pay duty on pilfered goods if

not restored to the importer is on:

a. Mr. Maganlal

b. Port Trust Authority


d. Neither a nor b above


36

Ans:- a b c d

iv. The rate of duty applicable on pilfered goods

is:

a.10%

b.12%

c.8%

d.12.5%

Ans:- a b c d

v. Calculate the import duty payable on pilfered

goods by the custodian or port trust authority.

a. 1 lakhs

b. 0.20 lakhs

c. 0.80 lakhs

d. 0.16 lakhs

6. If the pilfered goods are restored to the

importer then importer is liable to pay duty at

the rate prevailing on the date of:

a. filing bill of entry by the importer

b. filing import manifest or report by the

person-in-charge

c. restoration by the port authority to the

importer

d. order of clearance by the proper officer

Ans:- a b c d

Section 22: Abatement of Duty on damaged or

deteriorated goods

7. The abatement of duty on damaged or

deteriorated goods can be granted by:

a. Assistant Commissioner

b. Deputy Commissioner

c. Joint Commissioner

d. a or b above

Ans:- a b c d

8. Abatement of duty can be granted on any

imported goods that had been damaged or

deteriorated at any time:

a. after the unloading of goods in India

b. before the unloading of goods in India

c. during the unloading of goods in India

d. b or c above

Ans:- a b c d

9. The abatement in case of any imported

goods other than warehoused goods is

available if such goods are deteriorated at any

time after the unloading thereof in India but

before their examination u/s 17

State true or false

a. True

b. False

Ans:- a b c d

10. If any warehoused goods had been

damaged at any time before clearance for

home consumption, the abatement is available

only if such damaged is:

a. on account of any accident

b. due to willful act, negligence or default

of owner, his employee or agent

c. not due to willful act, negligence or

default of owner, his employee or agent

d. Both a and c above

Ans:- a b c d

11. Mr. Purohit imported some goods from

Germany the value of which is ₹ 10 lakhs and duty is payable at the rate of 20%. Some goods

has been damaged before the order of

clearance for home consumption has been

granted by the proper officer. The value of

goods after damages is ` 8 lakhs. Calculate the

duty payable by Mr. Purohit at the time of

clearance of goods for home consumption.

a. ₹ 2 lakhs

b. ₹ 1.6 lakhs

c. ₹ 0.40 lakhs

d. ₹ 0.50 lakhs

Ans:- a b c d


37

Section 23: Remission of duty on lost,

destroyed or abandoned goods

12. Remission of duty can be granted by

Assistant Commissioner on any imported

goods that are:

a. lost or stolen

b. lost or destroyed

c. pilfered


Ans:- a b c d

13. An importer can relinquish his rights on any

imported goods at any time after such goods

has been cleared for home consumption or

deposit in warehouse

State true or false

a. True

b. False

Ans:- a b c d

14. The owner of imported goods Mr. Atul

wants to abandon his title on imported goods

regarding which an offence appears to have

been committed under the Act other than

Customs Act. The officer does not allow Mr.

Atul to abandon his rights on such goods. State

whether the action taken by the officer is

correct in law.

a. Correct

b. Incorrect

Ans:- a b c d

15. On relinquishment of title on any imported

goods, the importer shall ………… thereon.

a. be liable to duty

b. be liable to duty at reduced rate

c. not be liable to duty

d. be eligible for refund

Ans:- a b c d

16. M/s Fortuner Ltd. an oil dealer imported

edible oil from Saudi Arab. The quantity

imported was 10000 liters whereas, only 9500

liters of oil was found at the time of unloading

at the customs port. The concession can be

granted to M/s Fortuner Ltd. for 500 liters of oil

under:

a. Section 13: Pilfered goods

b. Section 22: Abatement of duty on

damaged or deteriorated goods

c. Section 23: Remission of duty on lost,

destroyed or abandoned goods

d. None of above

Ans:- a b c d

Section 24: Power to make rules for

denaturing or mutilation of goods

17. …….. is having the power to make rules for

denaturing or mutilation of goods.

a. Central Board of Indirect Taxes and

Customs

b. Central Board of Excise and Customs

c. Central Government

d. State Government

Ans:- a b c d

18. On any denatured or mutilated goods duty

shall be chargeable at the rate:

a. of original goods

b. as if such goods are imported in

denatured or mutilated form

c. Separately notified by CG

d. None of above

Ans:- a b c d

Section 21: Derelict, Jetsam, Flotsam & Wreck

19. Mr. Arjun found an abandoned ship along

with some goods in high seas. He brought that

ship along with him while returning to India.

The custom officer imposed duty on such ship

as if they are imported into India but Mr. Arjun

denies paying the duty on the ground that it

was available freely in the high seas. State

whether the contention of Mr. Arjun is correct

in law

a. Correct


38

b. Incorrect:- as all derelict, jetsam, flotsam

& wreck goods brought into India are

treated as imported goods and liable to

duty unless proved otherwise

Ans:- a b c d

Section 20: Re-importation of Goods

20. The exported goods which are re-imported

into India for repairs are not liable to any

import duty on such re-importation even

though such goods are re-exported after 13

months from the date of re-importation

State true or false

a. True

b. False

Ans:- a b c d

21. The re-imported goods in India which were

exported earlier are liable to duty and subject

to all conditions & restrictions as goods of

…………… are liable on importation

a. identical nature

b. similar nature


d. like kind and value

Ans:- a b c d

Answers :-

1 c 10 d

2 b 11 b

3 d 12 b

4 c 13 b

5(i) d 14 a

(ii) c 15 c

(iii) b 16 c

(iv) a 17 c

(v) b 18 b

6 a 19 b

7 d 20 b

8 d 21 d

9 b


39


40

Section 83: Rate of duty and tariff

valuation in respect of goods imported or

exported by Post or Courier

1. Where goods are imported by post

through vessel and the postal authority

presented the list of particulars of post

article to the proper officer before the

date of arrival of such vessel, and then

duty rate applicable on such post

article will be the rate in force on:

a. date of presentation of list by

postal authority

b. date of arrival of the vessel

c. date of bill of entry filed by the

importer

d. date of entry inward of the vessel

Ans:- a b c d

2. Mr. Alex imported a wrist watch from

Dubai by Post on 10.04.18. The aircraft

arrived at the Indian airport on

12.04.2018 and the postal authorities

presented to the proper officer the list

containing the particulars of such wrist

watch on 15.04.2018. The rate of duty

on various dates is as follows:

Date Duty Rate

10.04.18 10%

12.04.18 8%

15.04.18 12%

Identify the rate of duty applicable on wrist

watch imported by Mr. Alex

a. 10%

b. 8%

c. 12%


Ans:- a b c d

3. Mr. Uday exported some goods to

Nepal by courier. The export goods

handed over to courier agency on

5.5.18 for exportation. The proper

officer issued the Let export order on

8.5.18. Entry outward granted to the

vessel on 9.5.18 and the goods crosses

the territorial water on 10.5.18.

Determine the relevant date for duty

rate in case of Mr. Uday.

a. 5.5.18

b. 8.5.18

c. 9.5.18

d. 10.5.18

Ans:- a b c d

4. Mr. Gopal imported some goods by

post worth ₹ 5 lakh on 15.10.18. The postal authority presented to the

proper officer the advance post list

containing the details of goods

imported by Mr. Gopal on 20.10.18.

The vessel containing the imported

goods arrived on 22.10.18 and entry

inward is granted on 23.10.18 Calculate

the import duty payable by Mr. Gopal

by considering the appropriate rate of

duty from the following table.

Date Rate of duty

15.10.18 8%

20.10.18 10%

22.10.18 12%

23.10.18 18%

a. ₹ 40000

b. ₹ 50000

c. ₹ 60000

d. ₹ 90000

Ans:- a b c d


41

5. The definition of Stores means & includes:

a. Goods for use in vessel or aircraft and

fuel, spare parts and other articles for

immediate fitting

b. Goods for use in vessel or aircraft and

fuel, spare parts and other articles,

whether or not for immediate fitting

c. Goods for use in vessel or aircraft and

fuel, spare parts and other articles, not

for immediate fitting


Ans:- a b c d

6. Foreign going vessel includes:

a. Any vessel carrying passenger in India

b. Naval vessel of foreign government

participating in naval exercises

c. Any vessel engaged in fishing

operations outside India

d. All of the above

Ans:- a b c d

7. State whether the aircraft of Foreign Airline

Company, providing passenger transport

service in 10 countries including India

carrying passengers from Mumbai to

Calcutta without touching any intermediate

airport is a foreign going aircraft or not

a. Yes, it is a foreign going aircraft

b. No, it is not a foreign going aircraft

Ans:- a b c d

8. Any vessel or aircraft going outside India for

the purpose other than carriage of goods

and passenger is not treated as foreign

going vessel or aircraft.

State true or false

a. True

b. False

Ans:- a b c d

9. Warehousing without warehousing

can also be applicable to stores which

are supplied to ………… without payment of import duty

a. vessel

b. aircraft

c. vehicle

d. Both a and b above

Ans:- a b c d

10. Mr. Parag imported some goods and

warehoused them in customs bonded

warehouse. He can avail the facility of

warehousing without warehousing

only if:

a. He makes and subscribes to a

declaration that the goods are to be

supplied as stores to vessel/

aircraft

b. He makes and subscribes to a

declaration that the goods are to be

supplied as stores to vehicle

c. Both a and b above

d. No such facility is available to

importer

Ans:- a b c d

11. Any imported stores cannot allowed

to be transshipped to another vessel

from consumption thereon without

payment of duty

a. True

b. False

Ans:- a b

12. Any imported stores on board a vessel

or aircraft may without payment of

duty be consumed thereon as stores

during the period for which such

vessel or aircraft is a foreign going

vessel or aircraft

State True or False

a. True

b. False


42

Ans:- a b

13. M. J. Exports Pvt. Ltd. wants to export

the goods imported by them and on

which import duty has been paid.

State the treatment of import duty

paid at the time of importation by M.

J. Exports Pvt. Ltd.

a. Duty paid on their import shall be

repaid as refund

b. Duty paid on their import shall not

be repaid as refund

c. Duty paid on their import shall be

repaid as drawback

d. Either a or c above

Ans:- a b c d

14. Drawback of duty paid on import of

fuel, lubricant oil and other stores of

vessel is repaid at 100%

a. True

b. False

Ans:- a b

15. Sahara India Ltd. imported fuel and

lubricant oil from Iran for use in

foreign going aircraft by paying import

duty thereon. State the percentage at

which the drawback is repaid to

Sahara India Ltd.

a. 98% of import duty paid on such

goods

b. 100% of import duty paid on such

goods

c. 98% of import duty paid on such

goods along with other stores

d. 100% of import duty paid on such

goods along with other stores

Ans:- a b c d

16. Import duty paid on goods imported

by Jet Airways other than fuel and

lubricant for a foreign going vessel is

eligible for:

a. Drawback @ 100%

b. Drawback @ 98%

c. Refund @ 100%

d. Refund @ 98%

Ans:- a b c d

17. Only imported goods are allowed to

be supplied as duty free stores to

foreign going vessel and not goods

manufactured or produced in India.

Identify the correctness of this

statement

a. Correct

b. Incorrect

Ans:- a b

18. Concession in respect of imported

stores can be given if they are

consumed on board by:

a. Navy

b. Army

c. Air force

d. All of the above

Ans:- a b c d

19. Which of the following concession are

available to the navy in respect of

imported stores?

a. Imported stores may be consumed


b. Imported stores supplied to Indian

navy are not subject to Import Duty

c. Imported stores taken on board of

Indian navy are allowed to 100%

duty drawback

d. All of the above

Ans:- a b c d

20. Mr. Raj imported beverages from

Dubai and decided to supply such

goods as stores to the Indian Navy.


43

State the option available to Mr. Raj in

respect of import duty on such

beverages.

a. Beverages can be supplied to the

ship of Indian navy without

payment of duty

b. if duty paid on beverages which are

supplied to ship of Indian Navy then

drawback of import duty paid is

available

c. Beverages can be supplied to the

ship of Indian navy after payment

of basic custom duty


Ans:- a b c d

21. For the purpose of Custom clearance

of arriving passengers, a two channel

system has been adopted in which

green channel is for passengers having

dutiable goods.

State true or false

a. True

b. False

Ans:- a b c d

22. Mr. Kabir of 25 years imported a

laptop computer from USA for ₹ 25000 as baggage. Calculate the

amount of custom duty payable by

Mr. Kabir.

a. ₹ 8750

b. ₹ 27500

c. ₹ 25000

d. No duty is payable as exemption is

available on one laptop

Ans:- a b c d

23. If a passenger of Indian Origin arriving

from Bangladesh and carrying articles

other than mentioned in Annexure-I

as baggage then the free allowance

limit is upto ₹: a. No limit is specified

b. 15000

c. 50000

d. 35000

Ans:- a b c d

24. Mr. John, tourist of foreign origin

imported articles other than those

mentioned in Annexure-I by land

route from Bhutan valuing ₹ 5 lakhs. State the free allowance limit

available to Mr. John

a. No benefit

b. ₹ 15000

c. ₹ 50000

d. ₹ 35000

Ans:- a b c d

25. Identify the rate of custom duty

applicable on articles imported within

the limit specified in Annexure-I

a.35%

b.38.5%

c.110% (100% custom duty + 10% SWS)

d. Exempted from custom duty

Ans:- a b c d

26. Which of the following items are

leviable to customs duty at the rate of

110% (including 10% SWS)?

a. Cartridges of fire arms exceeding

50

b. Cigars exceeding 25

c. Alcohol & wines in excess of 2 liters

d. All of the above

Ans:- a b c d

27. 20 Cigars of ₹ 50000 were imported by Mr. Adnan from UK. Calculate the


44

amount of custom duty payable by

Mr. Adnan

a. ₹ 50000

b. ₹ 55000

c. ₹ 19250

d. No import duty payable

Ans:- a b c d

28. Ornaments of gold and silver are

covered in the list of Annexure-I and

liable for import duty at the rate of

110%

State true or false

a. True

b. False

Ans:- a b c d

29. The benefit of Jewelry is available in

addition to general free allowance and

it is available to Indian passenger as

well as passenger of foreign origin

State true or false

a. True

b. False

Ans:- a b c d

30. Mrs. Ambani resident of India,

returned back to India after residing in

Dubai for a period of six months. State

the limit upto which she can bring

jewelry with herself without duty

while returning to India.

a. 40 grams

b. ₹ 100000

c. Lower of a or b above


Ans:- a b c d

31. Mr. Aamir resident of India, returned

back to India from UK after 2 years of

stay and brought jewelry of ₹ 55000 ( 18 grams). Duty payable by Mr. Aamir:

a. Nil

b. ₹ 1925

c. ₹ 1750

d. ₹ 1803

Ans:- a b c d

32. Mr. Avinash brings 165 Cigarettes

from Paris. Sticks eligible for general

free allowance are:

a. 50

b. 165

c. 100

d. 125

Ans:- a b c d

33. Value of personal computer is ₹ 1,10,000 and personal effects is ₹ 60,000 and duty free allowance is ₹ 1,00,000 as per rule 6 of baggage as

passenger permanently transferring

his residence after 9 month of stay in

abroad. The value of baggage liable to

duty will be:

a. ₹ 50,000

b. ₹ 60,000

c. ₹ 70,000

d. ₹ 10,000

Ans:- a b c d

34. Mr. Sumit an Indian Passenger,

permanently transferring his

residence from Australia after 7

months of stay. Mr. Sumit will be

allowed to bring duty free articles

such as personal and household

articles, other than those mentioned

in Annexure-I or Annexure-II but

including articles mentioned in

Annexure-III, upto an aggregate value

of:

a. ₹ 50,000


45

b. ₹ 55,000

c. ₹ 60,000

d. ₹ 1,00,000

Ans:- a b c d

35. State which of the following item is

not leviable to duty as baggage?

a. Alcohol or wine in excess of 2 litres

b. Gold and silver bars

c. 90 Cigarettes

d. Flat Panel LED Television

Ans:- a b c d

36. Mr. Alex an Indian resident, aged 65

years, returned to India after visiting

Paris for 15 days. On his way back to

India he brought following goods with

him:-

1. Personal effects valuing ₹ 60000

2. 1.5 litres of wine worth ₹ 3500

3. A video cassette player worth ₹ 21,000

4. A microwave oven worth ₹ 25,000

5. Calculate the custom duty payable

by Mr. Alex

a. ₹ 19058

b. ₹ 42158

c. ₹ 21560

d. Nil

Ans:- a b c d

1 B 11 b 21 b 31 b

2 C 12 a 22 d 32 c

3 A 13 c 23 c 33 d

4 c 14 b 24 a 34 d

5 b 15 b 25 b 35 c

6 d 16 b 26 d 36 d

7 a 17 b 27 d

8 b 18 a 28 b

9 d 19 d 29 b

10 a 20 d 30 d


46


47

Section 74: Drawback allowable on re-

export of duty paid goods

1. The drawback on re-export is

allowable on those goods which

satisfies the conditions such as:

a. they are originally imported into

India

b. duty has been paid at the time of

importation

c. goods which are to be re-exported

must be easily identified as the

same were imported into India

d. All of the above

Ans:- a b c d

2. The modes through which goods can

be exported as such are:

a. Cargo mode/ Baggage mode/

Postal mode

b. Postal mode/ Baggage mode

c. Baggage mode/ Cargo mode

d. Cargo mode/ Postal mode

Ans:- a b c d

3. Mr. Joseph wants to re-export the

wrist watch imported by him from

China as such, because the watch is

not as per his order or specifications.

The import duty was paid by Mr.

Joseph at the time of importation. Mr.

Joseph opt the cargo mode to re-

export his wrist watch but the officer

does not allow him to use cargo mode

as it was too small item to be sent

through Cargo.

State whether the contention of

officer is valid in law.

a. Valid

b. Invalid

Ans:- a b

4. To be eligible for drawback goods

must be exported within ………… from the date of payment of duty on the

importation thereof.

a. One year

b. Two years

c. Three years

d. Five years

Ans:- a b c d

5. The rate of drawback on imported

goods which are exported as such

other than fuel and lubricant oil used

in aircraft is:

a. 100%

b. 88%

c. 98%

d. 95%

Ans:- a b c d

6. M/s Dinshaws Ltd. imported

refrigerator from Japan and paid

import duty thereon. After using it for

a month M/s Dinshaws Ltd. export

that refrigerator. The refrigerator was

easily identified as such by the officer

and it was exported within 2 years

from the date of payment of import

duty.

The rate of drawback on such goods

shall be:

a. 98%

b. 100%

c. at such percentage fix by Central

Board of Indirect Taxes


48

d. at such percentage fix by Central

Government by notification in

official gazette

Ans:- a b c d

7. In case of provisional assessment, for

the purpose of calculating the time of

two years, the date to be considered

is:

a. the date of payment of final duty

b. the date of payment of provisional

duty

c. the date of import

d. the date of export

Ans:- a b c d

8. Mr. Tushar imported ginning machine

from Germany and paid import duty

thereon. The part of that machinery

was not as per the specification and

hence, Mr. Tushar wants to export

that part of the machinery. State

whether drawback is available to Mr.

Tushar on export of part of machinery.

a. The drawback is available at 98% if

exported as such

b. The drawback is available at

specified rate if exported after use

c. Drawback is not available, as

export of part of machinery is not

allowed


Ans:- a b c d

9. Millipore (I) Pvt. Ltd. imported

machinery from Korea and paid

import duty thereon. The machinery

was operated once in an exhibition for

giving demonstration to the public.

After that the machinery was

exported back to Korea. State at what

rate drawback will be available to

Millipore (I) Pvt. Ltd.

a. 100%

b. 98%

c. at such rate as may be notify by

Central Government in Official

Gazette, having regard to duration

of use, depreciation in value and

other relevant circumstances.

d. No drawback will be available

Ans:- a b c d

10. Any machinery used in an exhibition

for display is not eligible for drawback

at the rate of 98% u/s 74(1) but

drawback can be claimed u/s 74(2) as

goods being used for display in

exhibition.

State true or false

a. True

b. False

Ans:- a b

11. What is the rate notified by Central

Government if the goods are exported

after using it for not more than nine

months?

a. 98%

b. 95%

c. 85%

d. 75%

Ans:- a b c d

12. Mr. Kumar imported printer for office

use from Japan and re-exported after

using it for 12 months. State the rate

of drawback applicable on such re-

export by Mr. Kumar

a. 75%

b. 70%

c. 65%


49

d. 98%

Ans:- a b c d

13. Identify the rate of drawback available

to Mr. Sinha on re-export of goods

imported for business use after 13

months from the date of payment of

import duty.

a. 98%

b. 85%

c. 65%

d. 70%

Ans:- a b c d

14. Drawback on imported motor car and

other goods for personal use is

calculated by reducing the import

duty paid in respect of such goods or

motor car by ……… percentage if the period of usage is upto 1 year

a. 4%

b. 3%

c. 2.5%

d. 2%

Ans:- a b c d

15. Drawback is not available on items

such as:

a. Wearing apparel, tea chests,

unexposed photographic films,

paper and plates and x-ray films &

Exposed cinematograph films duly

passed by Censor Board if used

b. Exposed cinematograph films not

duly passed by Censor Board

c. Exposed photographic films

d. All of the above

Ans:- a b c d

16. The time limit for re-exportation of

goods as such is ……….. from the date

of payment of import duty thereon

and for claim of drawback must be

filed …….. from the date of let export order, if not extended by AC/ DC

a. 2 years and 3 months

b. 3 years and 2 months

c. within 2 years and within 3

months

d. 2 years and within 2 months

Ans:- a b c d

17. Drawback of imported material used

in the manufacture of export goods is

not available

State true or false

a. True

b. False

Ans:- a b

18. Import duty paid in respect of a motor

car by James bond for personal use is

₹ 50000. James bond uses that motor

car for 4 months. Calculate drawback

to be allowed in this case.

a. ₹ 46000

b. ₹ 48000

c. ₹ 48500

d. ₹ 47500

Ans:- a b c d

19. Drawback of import duty shall be

allowed when they are exported out

of India after use:

a. Wearing Apparel

b. Tea Chests

c. Exposed Cinematograph Films

d. Camera

Ans:- a b c d

20. Decent Limited. imported 120

computer systems from USA & paid


50

import duty of ₹ 50 lakhs. Due to mismatch in specification, all the

computer systems were returned to

the supplier after 7 months without

using them at all. Calculate duty

drawback thereon

a. ₹ 44 lakhs

b. ₹ 44.24 lakhs

c. ₹ 49 lakhs

d. ₹ 46 lakhs

Ans:- a b c d

21. Drawback u/s 75 is available on:

a. imported goods

b. manufactured product

c. export goods

d. imported goods used in the

manufacture of export goods

Ans:- a b c d

22. The modes of export allowable for

drawback u/s 75 are:

a. Post and Cargo

b. Post, Cargo & Baggage

c. Cargo and Baggage

d. Post and Baggage

Ans:- a b c d

23. Drawback u/s 75 is allowable if the

imported goods and export goods are:

a. easily identified

b. same

c. entirely different from Input

d. Both a & b above

Ans:- a b c d

24. Which of the following documents are

required to be filed along with

drawback claim application?

a. Import Invoice

b. Triplicate copy of the Shipping Bill

bearing examination report

recorded by the proper officer of

the customs at the time of export

c. Copy of Bill of lading or Airway bill

d. All of the above

Ans:- a b c d

25. Drawback not to be allowed if:

a. Export value of finished goods is

less than value of imported goods

used therein

b. Export value is not more than such

percentage of imported value of

goods used, as notified by Central

Government

c. Both a & b above


Ans:- a b c d

26. Determine the eligibility of drawback

in following cases:

Export

Value

Value of

imported

material used

Eligibility of

drawback

Rs. 1100 Rs. 1000

Rs. 1000 Rs. 1000

Rs. 2000 Rs. 1500

a. All of the above cases are eligible

for drawback

b. Eligible, Not eligible, Not eligible

c. Eligible, Eligible, Not eligible

d. All of the above cases are not

eligible for drawback

Ans:- a b c d

27. Export value of finished goods is ₹ 30000. Notified value addition is 50%.

Value of imported material used is ₹ 25000. Drawback is allowed at 15%.

Calculate the amount of drawback.

a. ₹ 4500


51

b. ₹ 3750

c. ₹ 750

d. Nil

Ans:- a b c d

28. Drawback shall not be allowed if the

goods do not reach the destination

State true or false

a. True

b. False

Ans:- a b

29. All Industry Rate (AIR) is notified by:

a. Assistant/Deputy Commissioner

b. Central Board of Indirect Taxes &

Customs

c. Central Government

d. Principal Commissioner/

Commissioner of customs

Ans:- a b c d

30. An exporter who has already filed

duty drawback claim under All

Industry Rate cannot file an

application for fixation of ………….., if

AIR is declared at 90% of duty paid.

a. Brand Rate

b. Special Brand Rate

c. Both a & b above

d. Reduced rate

Ans:- a b c d

31. An exporter can apply for Special

Brand Rate when:

a. Brand rate is lower by 80% of duty

paid

b. All Industry rate is lower by 80% of

duty paid

c. Both a & b above

d. Brand rate is lower by 60% of duty

paid

Ans:- a b c d

32. Brand rate is issued for such goods for

which:

a. No special brand rate is

announced

b. No all industry rate (AIR) is

announced

c. AIR is announced but it is lower by

80% of duty or taxes paid

d. Both b & c above

Ans:- a b c d

33. Application fees required to be paid

by an exporter applying for special

brand rate or brand rate is:

a. ₹ 1000

b. 1% of FOB

c. 1% of FOB or ₹ 1000 whichever is lower

d. Higher of a or b above

Ans:- a b c d

34. The drawback amount or rate

determined under rule 3 i.e. all

industry rate shall not exceed:

a. One fifth of the market price of the

export product

b. One fourth of the market price of

the export product

c. One third of the market price of

the export product

d. One tenth of the market price of

the export product

Ans:- a b c d

35. Relevant date for determination of

AIR in case of goods exported by

vessel, vehicle or aircraft other than

by post is:

a. Date of shipping bill


52

b. Date of entry outward

c. Date of order of clearance

d. Date of Let export order

Ans:- a b c d

36. Mr. Somesh has exported 2000 pairs

of footwear at ₹ 1500 per pair and applied for drawback. The FOB value is

₹ 30 lakhs. The drawback is allowed @

10% of FOB value subject to maximum

of ₹ 55 per pair. Calculate the drawback amount.

a. ₹ 300000

b. ₹ 110000

c. ₹ 82500

d. No drawback will be allowed

Ans:- a b c d

37. M/s Welfare Ltd. paid export duty of ₹ 15000 on goods for which AIR is

announced ₹ 12500. M/s Welfare Ltd. applied for special brand rate. State

whether the action of M/s Welfare

Ltd. is valid in Law.

a. Valid

b. Invalid

Ans:- a b

38. The time limit for payment of

drawback to the claimant without

interest is within ………. from the date of filing a claim for payment of such

drawback

a. Three months

b. One month

c. 90 days

d. 30 days

Ans:- a b c d

39. If the amount of drawback is not paid

within a period of one month from the

date of filing a claim for payment of

such drawback, then the claimant is

eligible to get in addition of the

amount of drawback, interest at the

rate of:

a. 12% p.a.

b. 18% p.a.

c. 6% p.a.

d. 15% p.a.

Ans:- a b c d

40. Mr. Kunal was erroneously refunded a

sum of ₹ 10000 which was payable to Mr. Ketan on 1.1.18. The same was

returned to the Department on

15.4.18. Calculate the interest amount

payable by Mr. Kunal

a. ₹ 500

b. ₹ 438

c. ₹ 432

d. ₹ 518

Ans:- a b c d

41. Drawback shall not be allowed where:

a. the market price is less than the

amount of drawback on any goods

b. the drawback amount on any

goods is less than fifty rupees

c. the Central Government is of the

opinion that goods are likely to be

smuggled back into India

d. All of the above

Ans:- a b c d

42. The relevant date in case of filing

refund claim may be any one of the

following:

a. Date of let export order

b. Date of abandonment of goods

c. Date of destruction of goods

State true or false


53

a. True

b. False

Ans:- a b

Answers:-

1 d 11 d 21 d 31 b 41 d

2 a 12 b 22 a 32 b 42 a

3 b 13 c 23 c 33 c

4 b 14 a 24 d 34 c

5 c 15 a 25 c 35 d

6 d 16 c 26 a 36 b

7 b 17 b 27 d 37 b

8 c 18 a 28 b 38 b

9 c 19 d 29 c 39 c

10 b 20 c 30 c 40 c


54


55

1. “Tariff item” means a description in the list of tariff provisions accompanying:

a. 8-digit number with rate of duty

b. 6-digit number with rate of duty

c. 8-digit number with or without rate of

duty

d. 6-digit number with or without rate of

duty

Ans:- a b c d

2. Latter the better rule for classification falls

under:

a. Rule 3(a)

b. Rule 3(b)

c. Rule 3(c)

d. Rule 4

Ans:- a b c d

3. Akin rule for classification falls under:

a. Rule 3(a)

b. Rule 3(b)

c. Rule 3(c)

d. Rule 4

Ans:- a b c d

4. The principle by which goods are classified

based on how they are known in market is:

a. Common/ Trade Parlance Test

b. Latter the Better

c. Market knowledge Theory

d. Specific prevails over general

Ans:- a b c d

5. Which of the following is not a condition to

apply Preferential rate of duty?

a. A preferential rate of duty is specified in

the First Schedule, or is admissible by

virtue of exemption

b. owner of articles claims at the time of

importation that it is chargeable with

preferential rate of duty

c. such article is the produce or

manufacture of notified preferential area

d. Commissioner has approved the import

with that area

Ans:- a b c d

6. Which of the following is/are the

condition/(s) for levy of duty at a lower rate

under a trade agreement u/s 5?

a. lower duty is specified in trade

agreement between Govt. of India and

Govt. of foreign country

b. imported articles are produce or

manufacture of foreign country or

territory

c. the owner of such article makes a claim at

the time of importation

d. All of the above

Ans:- a b c d

7. Protective duty can be imposed by:

a. Central Government

b. Tariff Commission

c. Proper officer of Customs

d. Central Government on the

recommendation of Tariff Commission

Ans:- a b c d

8. Protective duty is imposed to protect the

interest of:

a. Domestic Industry

b. any Industry established in India

c. Foreign Industry

d. Both a & c above

Ans:- a b c d

9. The safeguard duty is imposed by Central

Government if any article imported into

India in increased quantities in order to:

a. cause injury to domestic industry

b. cause or threatening to cause injury to

industry established in India

c. threatening to cause injury to domestic

industry

d. cause or threatening to cause serious

injury to domestic industry


56

Ans:- a b c d

10. The countervailing duty on subsidized

article or anti-dumping duty shall, unless

revoked earlier cease to have effect on the

expiry of:

a. Four years

b. Five years

c. Ten years

d. Two years

Ans:- a b c d

11. Central Government may levy

countervailing duty or anti-dumping duty

retrospectively from a date prior to the

date of imposition of such duties, but not

beyond ………. back from the date of notification.

a. thirty days

b. sixty days

c. ninety days

d. one hundred and eighty days

Ans:- a b c d

12. Mr. Amit imported commodity into India

from a country notified by Central Govt. u/s

9A of Customs Tariff Act, 1975. Following

particulars are made available by Mr. Amit

Particulars

CIF value of the consignment US $ 15000

Quantity imported 250 kgs.

Exchange rate applicable US $1= ₹ 50

Basic Custom Duty 10%

As per the notification, anti-dumping duty

will be equal to the difference between the

cost of commodity calculated @ US$ 100

per kg and the landed value of the

commodity as imported

Calculate the margin of dumping assuming

that only basic custom duty and social

welfare surcharge is leviable.

a. ₹ 8,32,500

b. ₹ 12,50,000

c. ₹ 4,17,500

d. ₹ 7,50,000

Ans:- a b c d

13. Appeal can be filed to CESTAT if any person

is aggrieved by the order of determination

or review thereof regarding the existence,

degree and effect of any subsidy or

dumping in relation to import of any article.

Such appeal must be accompanied by the

fees of:

a. ₹ 10,000

b. ₹ 15,000

c. ₹ 25,000

d. ₹ 50,000

Ans:- a b c d

14. Every application made before the

Appellate Tribunal for the grant of stay or

for rectification of mistake or for

restoration of an appeal with fee

of……………

a. ₹ 1,000

b. ₹ 500

c. ₹ 100

d. ₹ 5,000

Ans:- a b c d

15. The time limit for filing appeal is ………….. from the date of order under appeal.

a. Within 30 days

b. Within 60 days

c. Within 90 days


Ans:- a b c d


is true or false.

Alcoholic liquor for human

consumption is out of the scope of GST,

hence, import of alcoholic liquor for

human consumption is not subject to

levy of additional duty i.e. ACD 3(1).

a. True

b. False


57

Ans:- a b c d

17. Additional duty i.e. ACD 3(1) is levied to

countervail the effect of----------- on

imported goods

a. Central Sales Tax

b. Service Tax

c. Value Added Tax

d. Excise Duty

Ans:- a b c d

18. For the purpose of valuation under ACD

3(1), the value of imported article shall

be the aggregate of:

a. Transaction value u/s 14 (1) or Tariff

value u/s 14(2) and Basic Customs

Duty u/s 12

b. Countervailing duty referred to in

section 9

c. Duty referred to in sub-section (3) &

(5)

d. All of the above

Ans:- a b c d

19. For the purpose of valuation under ACD

3(1), the value of imported article shall

not include:

a. Transaction value or Tariff value

[section 14]

b. Basic Customs Duty [section 12]

c. Social welfare surcharge on above

d. Safeguard duty [section 8B and 8C]

Ans:- a b c d

20. If any article is imported into India on

which it is required to declare on the

package thereof the retail sale price of

such article under the provisions of the

“Legal Metrology Act, 2009” or the rules made thereunder or under any

other law for the time being in force,

the value of the imported article shall

be deemed to be:

a. the retail sale price

b. the retail sale price less abatement

if any


d. Tariff value less abatement

Ans:- a b c d

21. Mr. Paresh imported some article on

which retail sale price is required to be

declared under “Legal Metrology Act,

2009” and for the like article produced or manufactured in India, Central

Government has fixed a tariff value, the

value of imported article shall be

deemed to be such:

a. Retail sale price

b. Retail sale price less abatement if

any


d. Tariff value

Ans:- a b c d

22. Additional Customs Duty i.e. ACD 3(3) is

levied to countervail the effect of Excise

duty on:

a. Alcoholic liquor for human

consumption

b. Raw Cotton

c. Manufactured Material

d. Raw Material

Ans:- a b c d

23. -------- is levied to countervail the effect

of excise duty on raw material

a. ACD 3(1)

b. ACD 3(5)

c. CVD 3(5)

d. ACD 3(3)

Ans:- a b c d

24. ACD 3(5) shall be levied to countervail

the effect of:

a. Excise duty on raw material

b. Excise duty on goods manufactured

in India

c. Sales tax or VAT

d. Central Sales Tax

Ans:- a b c d


58

25. ACD 3(5) shall be levied on any

imported article only if duty of ACD 3(1)

or 3(3) levied on such article. State

whether the statement is true or false.

a. True

b. False

Ans:- a b c d

26. ACD 3(5) shall be levied on any

imported article to countervail the

effect of Sales tax or VAT at the rate:

a. not exceeding four percent

b. exceeding four percent

c. not exceeding one percent

d. exceeding one percent

Ans:- a b c d

27. For calculating the additional duty u/s

3(5), which of the following duty/duties

are not included in it? Choose the

correct alternative.

1. duty referred to in sub-section (5),

(7) & (9) of section 3

2. countervailing duty referred to in

section 9

3. safeguard duty referred to in

sections 8B & 8C

4. anti-dumping duty referred to in

section 9A

5. duty referred to in sub-section (1) &

(3) of section3

a. 1,2, 3,4,5,

b. only 1, 2 & 3 above

c. only 2, 3 & 4 above

d. only 1, 2, 3 & 4 above

Ans:- a b c d

28. Which of the following duties or taxes

included for the calculation of duty

referred to in section 3(5)?

a. Basic Customs Duty u/s 12

b. ACD 3(1) or 3(3)

c. Transaction value or Tariff value

d. All of the above

Ans:- a b c d

29. Maximum tax rate that can be levied

u/s ACD 3(7) on any imported article in

addition to other duties & taxes shall

be:

a. Eighteen percent

b. Twenty eight percent

c. Forty percent

d. Twenty percent

Ans:- a b c d

30. While calculating the integrated tax

under sub-section (7) on any imported

article, following shall be excluded:

a. tax referred to in sub-section (7) of

section 3

b. cess referred to in sub-section (9) of

section 3

c. duty referred to in sub-section,(1),

(3) & (5) of section 3

d. Both a & b above

Ans:- a b c d

31. Mr. Ajay imported sewing machines

from Japan and warehoused such

goods by filing into bond bill of entry.

When the goods were in warehouse

Mr. Ajay sold it to Mr. Vijay for ₹ 10 lakhs. The imported values of such

goods were as follows:

Transaction value section 14(1) - ₹ 7 lakhs BCD @ 10% on above - ₹ 70,000

ACD 3(1) on above - ₹ 77,000

Integrated Tax u/s 3(7) - ₹ 126,000

Calculate the value of such goods for

the purpose of section 3(7) of Customs

Act

a. ₹ 1,000,000

b. ₹ 847,000

c. ₹ 973,000

d. ₹ 700,000

Ans:- a b c d

32. In case of sale of imported goods from

warehouse before clearance or export,

the value of such imported article


59

under sub-section (7) of section 3 shall

be:

a. value determined u/s 3(8)

b. transaction value of such goods

c. retail sale price of such imported

goods

d. higher of a or b above

Ans:- a b c d


is true or false

Imported articles are also liable to GST

compensation cess in India in addition

to other duties and taxes

a. True

b. False

Ans:- a b c d

34. Transaction value for the purpose

calculating ACD on warehouse sale

before clearance for home

consumption or export, where only part

of the warehoused goods has sold for

more than once, shall be:

a. the transaction value of first of such

transaction

b. the transaction value which is

higher of such transaction

c. the transaction value of last of such

transaction

d. none of the above

Ans:- a b c d

35. Mr. Sanjay imported goods from Nepal

valuing ₹ 1,050,000 which is inclusive of

all duties & taxes. Mr. Sanjay deposited

such goods in warehouse. While the

goods were in warehouse Mr. Sanjay

sold them to Mr. Ajay for ₹ 1,175,000

who in turn sold these goods to Mr.

Vinay for ₹ 1,235,000 and such goods

were further sold by Mr. Vinay to Mr.

Pranay for ₹ 1,225,000.

Determine the value of such imported

goods

a. ₹ 1,050,000

b. ₹ 1,175,000

c. ₹ 1,235,000

d. ₹ 1,225,000

Ans:- a b c d

36. FOB price of imported goods = $

4,00,000

Cost of transportation = ₹ 15,000

Cost of Insurance = ₹ 5,000

BCD rate = 12%, ACD 3(1) rate = 10%,

and GST on like article in India = 28%

The exchange rate notified by RBI = 1$

= ₹ 62, CBIC rate = 1$ = ₹ 62.50

Answer the following with respect to

above

i. Calculate Basic Custom Duty

a. ₹ 3,002,400

b. ₹ 2,976,000

c. ₹ 3,127,500

d. ₹ 2,978,400

Ans:- a b c d

ii. Calculate Additional Custom Duty

payable in ₹: a. 2,919,000

b. 2,832,264

c. 2,779,840

d. 2,777,600

Ans:- a b c d

iii. Determine the Assessable value or

CIF value.

a. ₹25,000,000

b. ₹24,800,000

c. ₹25,020,000

d. ₹24,820,000

Ans:- a b c d

iv. Calculate the GST value

a. ₹ 8,639,306

b. ₹ 8,723,373

c. ₹ 8,633,706

d. ₹ 8,636,706

Ans:- a b c d

37. CIF value = ₹ 15,00,000


60

Cost of transportation = ₹ 50,000

Cost of insurance = ₹ 20,000

BCD @ 10%, ACD 3(1) @ 12%, ACD 3(1)

@ 4%, ACD 3(7) @ 18%, ACD 3(9) @

18%

Answer the following questions on the

basis of the above given information

i. Determine the amount of

assessable value.

a. ₹ 1,570,000

b. ₹ 1,550,000

c. ₹ 1,520,000

d. ₹ 1,500,000

Ans:- a b c d

ii. Determine the amount of Basic custom

duty payable

a.₹ 157,000

b. ₹ 150,000

c. ₹ 152,000

d. ₹ 155,000

Ans:- a b c d

iv. Calculate the amount of duty payable

under ACD 3(1).

a. ₹ 198,000

b. ₹ 227,964

c. ₹ 207,240

d. ₹ 199,800

Ans:- a b c d

v. What will be the amount of duty

payable under ACD 3(5).

a. ₹ 74,592

b. ₹ 85,107

c. ₹ 77,370

d. ₹ 73,920

Ans:- a b c d

vi. IGST payable under ACD 3(7) is:

a. ₹ 345,946

b. ₹ 362,090

c. ₹ 349,091

d. ₹ 365,381

Ans:- a b c d

vii. IGST payable under ACD 3(9) is:

a. ₹ 349,091

b. ₹ 362,090

c. ₹ 411,927

d. ₹ 365,381

Ans:- a b c d


61

Answer:

1 C 11 C 21 d 31 a (ii) b

2 C 12 C 22 d 32 d (iii) d

3 D 13 B 23 d 33 a (iv) a

4 A 14 B 24 c 34 c (v) c

5 D 15 C 25 b 35 d (vi) a

6 D 16 b 26 a 36(i) a

7 D 17 d 27 d (ii) b

8 B 18 a 28 d (iii) c

9 D 19 d 29 c (iv) b

10 b 20 b 30 d 37(i) d


62


63

1. Audit under customs laws includes:

a. Examination or verification of

Import or Export licence,

authorization, scrip, certificate, etc.

b. Inspection of samples and goods

c. Examination or verification of Test

or analysis reports

d. All of the above

Ans:- a b c d

2. The proper officer may carry out audit:

a. In his office

b. In the premises of the Auditee

c. Both a & b above


Ans:- a b c d

3. Auditee has to preserve and make

available relevant documents for the

following period:

a. 5 years

b. 6 years

c. 8 years

d. 10 years

Ans:- a b c d

4. The proper officer shall give advance

notice to the auditee before start of

audit under customs, not less than:

a. 30 days

b. 25 days

c. 15 days

d. 60 days

Ans:- a b c d

5. Any Auditee, who contravenes

provisions of regulations made under

section 99A is liable to penalty which

may extend to:

a. ₹ 1,00,000

b. ₹ 50,000

c. ₹ 10,000

d. 10% of tax involved

Ans:- a b c d

6. Where the audit is conducted at the

premises of the auditee , the proper

officer shall complete audit within:

a. 30 days from the date when audit

documents are made available

b. 30 days from the date of starting of

the audit

c. 15 days from the date when audit

documents are made available

d. 15 days from the date of starting of

the audit

Ans:- a b c d

7. Books of account includes ledgers,

daybook, cashbook, other accounts

related records kept in:

a. written form

b. printed form

c. electronic form

d. any of the above

Ans:- a b c d

8. M/s Star Pvt. Ltd. maintained its books

of accounts for the financial year 2018-

19 in electronic form and not in written

form. The proper officer rejects the

books of accounts as it was not in

written or printed form. State whether

the action taken by the officer is valid

in law.

a. Valid

b. Invalid

Ans:- a b


64

Answers:-

1 d

2 c

3 a

4 c

5 b

6 b

7 d

8 b


65


66

1. Claim for refund shall be presented by

an applicant in:

a. Form-A

b. Form-R

c. Form-C

d. Form-P

Ans:- a b c d

2. The application for the refund of duty

or interest shall be made by a person,

other than importer, before the expiry

of ……………….. from the date of purchase of goods by such person

a. 1 year

b. 2 year

c. 3 year

d. 5 year

Ans:- a b c d

3. Refund will not be granted if the

amount involved is:

a. ₹ 100

b. less than ₹ 100

c. less than ₹ 500 d. ₹ 500

Ans:- a b c d

4. In case where duty is provisionally

assessed u/s 18 of Customs Act and re-

assessment is done, the relevant date

of refund under customs is the date

of:

a. Final assessment

b. Re-assessment

c. Provisional assessment

d. All of the above

Ans:- a b c d

5. The order of refund may be made by:

a. Assistant/ Deputy Commissioner

b. Principal Commissioner/

Commissioner

c. Chief Commissioner

d. All of the above

Ans:- a b c d

6. The time limit of 1 year from relevant

date for claiming the refund is also

applicable for duty paid under protest

State true or false

a. True

b. False

Ans:- a b

7. Circumstances under which the

principle of unjust enrichment is not

applicable are:

a. The import duty and interest on

such duty, paid by an individual for

his personal use

b. Drawback of duty payable u/s 74 &

75

c. The duty and interest on such duty

is paid by an importer or exporter,

as the case may be and he had not

passed the burden of such duty or

interest to any other person

d. All of the above

Ans:- a b c d

8. Mr. Aman, resident of India imported

a car from France for personal use and

paid excess import duty at the time of

clearance from custom station. Mr.

Aman file the claim for refund but the

officer rejected the claim on the basis

of unjust enrichment. Clarify the

action of the officer

a. The action taken by the officer is

correct in law

b. The action taken by the officer is

incorrect in law as the principle of

unjust enrichment will not apply


67

to refund of duty on imported car

for personal use

Ans:- a b

9. Export duty paid by the exporter or

any other person on his behalf will be

refunded only if:

a. Goods are returned to such person

otherwise than by way of re-sale

b. Goods are re-imported within 1

year from the date of exportation

c. An application for refund of such

duty is made before the expiry of

6 months from the date on which

the proper officer makes an order

for the clearance of goods

d. All of the above

Ans:- a b c d

10. M/s ABC Ltd. exported goods to New

York but the goods were returned

back to India due to some defects. M/s

ABC Ltd. can get refund of export duty

paid on such goods if an application

for refund of such duty is made

before…………… from the date on which the proper officer makes an

order for the clearance of the goods.

a. 1 year

b. expiry of 6 months

c. 180 days

d. expiry of 12 months

Ans:- a b c d

11. The time limit for payment of refund

by C.G. without interest is within:

a. 6 months from the date of receipt

of application

b. 6 months from the date of receipt

of order of refund

c. 3 months from the date of receipt

of order of refund

d. 3 months from the date of receipt

of application

Ans:- a b c d

12. Interest on delayed payment of

refund is payable at the rate of:

a. 12% p.a.

b. 18% p.a.

c. 6% p.a.

d. 24% p.a.

Ans:- a b c d

13. Mr. Rohan exported some goods to

Nepal which were returned back due

to defect in those goods. Export duty

paid at the time of exportation by Mr.

Rohan was ₹ 50000. Now Mr. Rohan

claims the refund of export duty paid

on 10.4.18. The application for refund

was received on 30.4.18 and the

refund was paid on 31.10.18.

Calculate the amount of interest

payable by C.G. on such refund

amount.

a. ₹ 1512

b. ₹ 756

c. ₹ 1677

d. ₹ 3000

Ans:- a b c d

14. Appeal to Commissioner (Appeals) is

to be made against an order passed by

a customs officer within ………. of receipt of the order against which the

person is aggrieved

a. 30 days

b. 45 days

c. 60 days

d. 90 days

Ans:- a b c d


68

15. Refund claim cannot be a substitute

for an appeal

State true or false

a. True

b. False

Ans:- a b

Answer:-

1 b 11 d

2 a 12 c

3 b 13 b

4 b 14 c

5 a 15 a

6 b

7 d

8 b

9 d

10 b

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